1. Individual shareholders pay individual income tax at 20% of the dividends due; 2. Dividends received by individual shareholders 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 exemption; 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%.
Tax treatment of shareholders' dividends:
1. Shareholder dividend tax rate: According to the tax law, the dividend income obtained by individual shareholders from the company is subject to the withholding tax rate of 20%;
2. Tax declaration: the company withheld and remitted personal income tax when paying dividends, and reported and paid it to the tax authorities within the prescribed time limit;
3. Net after tax: The dividends actually received by individual shareholders are net after tax, that is, the amount after deducting individual income tax;
4. Tax relief policy: Under certain conditions, individual shareholders may enjoy tax relief policy, so it is necessary to pay attention to relevant tax laws and regulations;
5. Information disclosure: Dividends of listed companies need to be specified in the announcement, including the total amount of dividends before tax and the net amount after tax.
To sum up, individual shareholders are required to pay personal income tax at 20% of the dividends due, while dividends of listed companies can enjoy 50% preferential treatment. Overseas individual shareholders are exempt from tax, dividends among resident enterprises are exempt from income tax, and shareholders of overseas non-resident enterprises are required to pay corporate income tax at the rate of 10%, which reflects the differential arrangement of dividend income of different shareholders and sources in China's tax law.
Legal basis:
Individual Income Tax Law of the People's Republic of China
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Individual income tax rate: (1) For comprehensive income, the excess progressive tax rate of 3% to 45% is applicable (the tax rate table is attached); (2) For operating income, the excess progressive tax rate of 5% to 35% shall apply (the tax rate table is attached); (3) Income from interest, dividends and bonuses, income from property leasing, income from property transfer and accidental income shall be subject to the proportional tax rate of 20%.