Shareholders of the company pay dividend tax. Generally speaking, after-tax profits of enterprises should be distributed to shareholders. Personal income tax shall also be levied on the interest, dividends and bonus income obtained by shareholders. Foreign individuals pay dividends from foreign companies and do not pay personal income tax. After-tax profits of resident enterprises are not subject to enterprise income tax. Corporate income tax on dividends paid by non-resident enterprises.
Second, analysis
Dividends and bonuses earned by foreign individuals from foreign-invested enterprises are temporarily exempt from personal income tax. At the same time, China's tax law also stipulates that dividends obtained by foreign individuals from domestic listed companies are not taxed. Dividends, bonuses and other equity investment income between qualified resident enterprises belong to tax-free income. Non-resident enterprises that set up institutions and places in China are also tax-free income from dividends, bonuses and other equity investment income obtained from resident enterprises that are actually related to the institutions and places. Dividends obtained by non-resident enterprises need to be taxed at the rate of 10%.
3. What taxes should shareholders pay for dividends?
Dividends due to shareholders include personal income tax or enterprise income tax, because if shareholders are natural persons, they should pay personal income tax; If the shareholders of the company are legal persons, the enterprise income tax shall be paid by corporate shareholders; If the taxpayer fails to pay the tax within the tax payment period stipulated by the tax authorities, the tax authorities may impose a late fee.