The individual income tax rate for dividends is unified at 20%. This proportional tax rate applies to dividends and dividend income obtained by taxpayers. When calculating the taxable amount of individual income tax, the dividend income is multiplied by 20%. In practice, the company that pays the income, as a withholding agent, is responsible for withholding and paying taxes on a monthly basis or every time. This means that shareholders, as taxpayers, do not have to declare their own taxes, but the company directly deducts the corresponding taxes when paying dividends.

The scope of individual income tax collection:

1, wage income;

2. Income from the production and operation of individual industrial and commercial households;

3. Income from contracted operation and lease operation of enterprises;

4. Income from remuneration for labor services;

5. remuneration income;

6. Royalty income;

7. Income from interest, dividends and bonuses;

8. Property rental income;

9. Income from property transfer;

10, obtained by accident;

1 1, other income.

To sum up, the individual income tax rate for dividends is unified at 20%. Taxpayers do not need to declare their own taxes, and the company directly deducts the corresponding taxes when paying dividends.

Legal basis:

Individual Income Tax Law of the People's Republic of China

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Personal 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%.