According to China's tax law, tens of thousands of dividends are subject to personal income tax. The tax rate of individual income tax varies according to the income level. It is divided into seven grades, ranging from 3% to 45%. But for dividend income, the personal income tax rate is 20%.
Suppose you get a dividend of tens of thousands of yuan, first you need to determine whether the dividend belongs to the individual income of residents. If it is a dividend of an enterprise, then according to the individual income tax law, the dividend needs to pay individual income tax. If it is other types of dividends, such as dividends from partnership enterprises or dividends from sole proprietorship enterprises, personal income tax is also required.
For dividend income, the calculation method of personal income tax is: dividend amount × 20%. For example, if you get a dividend of 30,000 yuan, then the personal income tax to be paid is 30,000 yuan × 20% = 6,000 yuan.
It should be noted that the calculation of personal income tax may also be affected by other factors, such as your personal income tax threshold and pre-tax deduction. Therefore, when calculating personal income tax, it is recommended that you consult a professional tax consultant or lawyer to ensure that your tax obligations are fulfilled correctly.
To sum up, tens of thousands of dividends need to pay 20% personal income tax. However, the specific personal income tax calculation may be affected by other factors, so it is recommended to consult professionals to obtain accurate tax information.
Reasonable tax avoidance refers to reducing or avoiding paying excessive taxes through reasonable tax planning and planning within the legal scope. For the reasonable tax avoidance of dividend income, the following measures can be taken:
First of all, we can make full use of the preferential policies and relief measures in the tax law. For example, according to the tax law, individuals can enjoy a certain amount of tax exemption from dividend income obtained from enterprises, and the part that exceeds the tax exemption amount is taxed according to a certain proportion. Therefore, the dividend amount can be reasonably arranged so that the income does not exceed the tax allowance, thus reducing the tax amount.
Secondly, the tax optimization of dividends can be realized through reasonable company structure and equity arrangement. For example, dividend income can be distributed by setting up holding companies or subsidiaries to realize reasonable profit distribution and tax planning. In addition, the tax treatment of dividend income can be adjusted through reasonable equity transfer and equity transfer pricing.
In addition, we can make full use of international tax rules such as tax treaties and double taxation agreements to avoid or reduce double taxation on transnational dividend income. Through reasonable international tax planning, we can choose to pay dividends in areas with lower tax rates, thus reducing the tax burden.
It should be noted that reasonable tax avoidance is carried out within the scope permitted by law, and illegal means are not allowed to evade taxes. It is recommended to consult a professional tax lawyer or accountant during tax planning to ensure compliance and legality.
Legal basis:
People's Republic of China (PRC) Individual Income Tax Law (revised on 20 18): Article 4 The following personal income shall be exempted from individual income tax: (1) Bonuses awarded by provincial people's governments, ministries and commissions in the State Council, China People's Liberation Army units at or above the corps level, and foreign and international organizations in the fields of science, education, technology, culture, health, sports and environmental protection; (2) Interest on government bonds and financial bonds issued by the state; (3) Subsidies and allowances issued in accordance with the unified provisions of the state; (four) welfare funds, pensions and relief funds; (5) Insurance compensation. (6) Demobilized soldiers, demobilization fees and pensions; (7) Resettlement fees, resignation fees, basic pension or retirement fees, resignation fees and retirement living allowances paid to cadres and workers in accordance with the unified provisions of the state; (8) Income from diplomatic representatives, consular officials and other personnel of embassies and consulates in China who should be exempted from tax according to relevant laws; (9) Income exempted from tax as stipulated in international conventions and agreements signed by the Government of China; (ten) other tax-free income stipulated by the State Council. The tax exemption provisions in Item 10 of the preceding paragraph shall be reported by the State Council to the NPC Standing Committee for the record.