How to treat dividends of listed companies?

Enterprises need to withhold and pay personal income tax when paying dividends to shareholders. The specific operation is divided into two steps.

1, the accounting entry of dividend is,

Borrow: profit distribution-common stock dividends payable,

Loan: dividend payable.

2. When the payment is actually made,

Borrow: dividend payable,

Loan: bank deposit or cash on hand,

Taxes payable-personal income tax payable.

For the personal income tax payable, the enterprise shall declare it on the natural person declaration management system in the next reporting period.