First, understand the tax laws and regulations.
To pay dividends to domestic individuals, Hong Kong companies need to understand the tax regulations first. According to the Individual Income Tax Law of People's Republic of China (PRC) and its implementing regulations, domestic individuals shall pay individual income tax on income obtained from abroad, including dividends. Therefore, after receiving dividends from Hong Kong companies, domestic individuals need to calculate and pay personal income tax in accordance with relevant regulations.
Second, declare and pay taxes
After receiving dividends from Hong Kong companies, domestic individuals shall report and pay taxes to the tax authorities as required. When reporting, you need to provide relevant supporting documents, such as dividend vouchers and bank account transaction records. To prove the source and amount of income. At the same time, you need to fill in the personal income tax return form and calculate the tax payable according to the prescribed tax rate and calculation method.
Third, compliance operation.
To ensure compliance, domestic individuals should pay attention to the following points when receiving dividends from Hong Kong companies:
1. Ensure that the sources of dividends are legal and compliant, and avoid money laundering, tax evasion and other illegal acts;
2. Keep relevant certification documents and transaction records for inspection by tax authorities;
3. Understand and abide by relevant tax laws, regulations and policy changes in time to ensure tax compliance.
Fourth, tax consultation.
Due to cross-border tax problems, domestic individuals may face more complicated tax regulations and operational requirements when dealing with dividends of Hong Kong companies. Therefore, it is recommended to consult a professional tax agency or lawyer for accurate tax guidance and advice.
To sum up:
Dividends paid by Hong Kong companies to domestic individuals need to comply with relevant tax laws, regulations and policies. Domestic individuals should understand tax laws and regulations, declare and pay taxes, and follow the operation. They can consult professional tax agencies or lawyers to obtain accurate tax guidance.
Legal basis:
Individual Income Tax Law of the People's Republic of China
Article 8 provides that:
The following personal income shall be subject to personal income tax:
(1) Income from wages and salaries;
(2) Income from remuneration for labor services;
(3) Income from remuneration;
(4) Income from royalties;
(5) Operating income;
(6) Income from interest, dividends and bonuses;
individual income tax law of the people's republic of china rules for its implementation
Article 37 provides that:
The income from interest, dividends and bonuses stipulated in Item 6 of Article 8 of the Individual Income Tax Law refers to the income from interest, dividends and bonuses obtained by individuals owning creditor's rights and equity.