According to the individual income tax law, generally speaking, the after-tax profits of an enterprise should be distributed to shareholders, and the interest, dividends and bonus income obtained by shareholders should also be subject to individual income tax. Dividends invested by enterprises need to be handled according to different situations. If the enterprise pays dividends to individuals, it needs to withhold and pay 20% personal income tax. If it is invested by an enterprise, it shall be handled as follows. According to the Enterprise Income Tax Law and its implementing regulations, dividends, bonuses and other equity investment income between qualified resident enterprises are tax-free income. Dividends, bonuses and other equity investment income between qualified resident enterprises refer to the investment income obtained by resident enterprises directly investing in other resident enterprises. Dividends, bonuses and other equity investment income do not include the investment income obtained by continuously holding shares publicly issued and listed by resident enterprises for less than 65,438+02 months. The creditor's rights investment income obtained between resident enterprises is not tax-free income.
Calculation method of shareholders' dividends:
1. Individual shareholders shall pay personal income tax at 20% of the dividends due.
Dividends received from listed companies can be taxed at half.
3. No matter whether the dividends received by foreigners are listed companies or not, there is no need to pay taxes.
4. Income from investment dividends obtained by resident enterprises from other resident enterprises is tax-free.
5. Shareholders of overseas non-resident enterprises receive dividends from China resident enterprises in 2008 and beyond, and pay enterprise income tax at the rate of 10%.
The following income of an enterprise is tax-free income:
(two) dividends, bonuses and other equity investment income between qualified resident enterprises; Article 17 of the Regulations for the Implementation of the Enterprise Income Tax Law stipulates that the income from equity investment, such as dividends and bonuses, mentioned in Item (4) of Article 6 of the Enterprise Income Tax Law refers to the income obtained by an enterprise from the invested entity due to equity investment.
Dividends, bonuses and other equity investment income shall be realized according to the date when the investee makes the profit distribution decision, unless otherwise stipulated by the competent financial and tax authorities of the State Council.
Do investment companies need to pay taxes on dividends? Dividends invested by enterprises need to be handled according to different situations and also need to be taxed. The treatment methods and steps are all described above, and we can operate according to the regulations. This is very important for enterprises, so it must be strictly implemented in operation, preferably according to the actual situation of enterprises.