What does the dividend differential tax mean?

Dividend and dividend differential tax deduction refers to the fact that listed companies pay certain personal income tax according to the length of investors' shareholding when paying stock dividends. Usually, if the shareholding is within 1 month, the tax burden is 20%; If the shareholding is from 1 month to 1 year, the tax burden is10%; If the shareholding exceeds 1 year, individual income tax on dividends will be exempted.

Generally, stock dividends will be announced. In the announcement, the registration date and dividend date will be stated. Investors who hold shares of listed companies at the end of trading on the base date can participate in dividends. If they don't hold the shares of the dividend-paying company at the end of the trading day, they can't participate in the dividend.

It should be noted that the share price of listed companies will fall when they pay dividends, but the share price will rise later when the performance of listed companies is good. Users need to judge according to the actual situation. If users don't want to participate in dividends, they can sell their shares before the registration date.

Users will face greater risks when investing in stocks on a daily basis, and they are likely to suffer losses. However, when investing, users generally need to have knowledge of stocks, such as understanding the meaning of various terms and mastering trading skills. Finally, they should use their spare money to invest, not borrow money to invest.

Dividends are the profits that shareholders get from listed companies in a certain proportion on a regular basis, and dividends are the residual profits that listed companies distribute to shareholders according to their shareholding ratio after distributing dividends. Getting dividends is the basic purpose of investors to invest in listed companies, and it is also the basic economic right of investors. On the evening of September 7, 20 15, the Ministry of Finance, State Taxation Administration of The People's Republic of China and China Securities Regulatory Commission jointly issued a document, and from September 8, 20 15, the individual income tax policy for dividend differentiation of listed companies was appropriately adjusted, and tax incentives were strengthened for investors who held shares for more than 1 year, that is, those who held shares for more than 1 year were temporarily suspended.