How do shareholders of listed companies pay dividends?

After the listed company pays dividends, the original shareholders shall pay individual income tax at 10% of the dividends. Generally speaking, shareholders pay personal income tax at 20% of dividends. However, if the company belongs to a listed company, the personal income tax rate paid by shareholders will be halved. Personal income tax is generally withheld and remitted by the company before dividends.

1. How do the original shareholders of listed companies pay personal income tax?

Dividends of listed companies were originally calculated according to 10%. Normally, shareholders pay taxes according to their dividends:

1. Individual shareholders shall pay personal income tax at 20% of the dividends due.

2. Dividends obtained from listed companies can be taxed by half.

3. No matter whether the dividends received by foreigners are listed companies or not, there is no need to pay taxes.

4, resident enterprises from other resident enterprises to obtain investment dividend income tax-free.

2. What are the conditions for shareholders' dividends stipulated in the Company Law?

1. Cash distribution with profits of the current year shall meet the following requirements:

(1) The company made a profit in the current year;

(2) Deferred losses have been made up and carried forward;

(3) Withdraw statutory common reserve fund 10% and statutory public welfare fund 5%-10%;

2. In addition to meeting the condition of 1, the distribution of new shares with the profits of the current year shall also:

(1) The previous stock issue of the company has been fully raised, one year apart;

(2) There are no false records in the financial and accounting documents of the company in the past three years;

(3) The company's expected profit rate can reach the bank deposit profit in the same period;

3. In addition to meeting the conditions in Item 2 (1-3), the surplus reserve shall be converted into share capital:

(1) The company has made profits in recent three years and can pay dividends to shareholders;

(2) The retained amount of the statutory reserve fund after distribution shall not be less than 50% of the registered capital;

(3) In addition, according to the Company Law and the Guidelines for the Articles of Association of Listed Companies, the dividend distribution of listed companies must be proposed by the board of directors, and the shareholders' meeting shall be convened for deliberation and voting according to legal procedures, and it can only be realized by the shareholders' representatives attending the shareholders' meeting 1/2 cash distribution plan or 2/3 dividend distribution plan.

For the original shareholders of listed companies, the original shareholders must pay dividends according to their previous shares, so there is no special provision for the original shareholders to pay dividends. Moreover, the personal income tax rate for shareholders' dividends is the same for both the original shareholders and the later shareholders, and foreign shareholders do not need to pay a tax.