1. Personal income tax: If the shareholders are natural persons, personal income tax shall be paid for dividends at the tax rate of 20%. Individual shareholders can enjoy the policy of temporarily reducing the taxable income by 50%, that is, the effective tax rate is 25%.
2. Enterprise income tax: the dividend paid by an enterprise to an enterprise belongs to "after tax", that is, the enterprise pays enterprise income tax on its operating income first, which is generally 25%.
3. Dividends, bonuses and other equity investment income between resident enterprises, as well as dividends, bonuses and other equity investment income obtained by non-resident enterprises from resident enterprises when they set up institutions and places in China, are tax-free income.
4. Individual income tax and enterprise income tax are levied on different objects. Personal income tax is mainly targeted at individual shareholders, and corporate income tax is applicable to corporate shareholders. In addition, foreign individuals usually do not pay personal income tax for dividends from foreign companies, but dividends from domestic listed companies are not taxed.