Do I have to pay personal income tax to buy a fund?
You don't have to pay personal income tax to buy a fund. Whether you buy a fund to earn money or participate in fund dividends, you don't need to pay a tax. Buying a fund requires handling fees, such as subscription fee, redemption fee and operating fee.
Generally speaking, personal investment and buying funds have two kinds of benefits. One is the difference income from buying and selling or purchasing and redeeming funds; The second is the dividend income obtained from fund distribution. At present, no personal income tax is levied on the difference income obtained from the trading base. When the fund pays dividends, listed companies and bond issuing enterprises withhold and pay personal income tax when distributing dividends, bonuses and interest to securities investment funds, but they do not withhold and pay personal income tax when distributing funds to individual investors.
Individual investors don't have to pay taxes on investment funds, but enterprises will be different. After retail investors buy funds, the corresponding fund managers will use retail investors' money to buy investment targets such as stocks and bonds, and the process of buying and selling stocks will definitely involve stamp duty, trading commission and other expenses. When the fund receives dividends from constituent stocks, it also pays dividend tax.
After reading the above introduction, I believe everyone has a more comprehensive understanding of whether to pay personal income tax when buying a fund. As we all know, trading fund investors don't have to pay a tax, but in fact the wool is on the sheep, and indirect investors actually have to pay a tax.