Shareholders need to pay personal income tax when borrowing from the company. According to the Notice of the Ministry of Finance on Regulating the Collection and Management of Individual Income Tax for Individual Investors in State Taxation Administration of The People's Republic of China, People's Republic of China (PRC), if an individual investor borrows money from an enterprise (except a sole proprietorship enterprise or a partnership enterprise) that he invests in and fails to return it after the end of a tax year and is not used for the production and operation of the enterprise, the unpaid loan can be regarded as the dividend distribution of the enterprise to the individual investor, and the individual income tax should be paid according to the item of "interest, dividend and dividend income".
Classification of company shareholders
(1) dormant shareholders and registered shareholders
According to whether the actual capital contribution is consistent with the registration records, we divide the shareholders of the company into anonymous shareholders and named shareholders. A dormant shareholder refers to an investor who actually subscribes for the company's capital contribution or shares, but is recorded as another person in the company's articles of association, shareholder register and industrial and commercial registration. Dormant shareholders are also called dormant investors and actual investors. Nominal shareholders refer to shareholders whose contributions are consistent with their registered identities under normal circumstances. This paper sometimes refers to not actually contributing capital, but accepting the entrustment of anonymous shareholders and registering as the trustee of shareholders in the industrial and commercial department for the benefit of anonymous shareholders.
(2) Individual shareholders and institutional shareholders
According to the status of shareholders, it can be divided into institutional shareholders and individual shareholders. Institutional shareholders refer to legal persons and other organizations that enjoy shareholder rights. Institutional shareholders include all kinds of companies, all kinds of enterprises owned by the whole people and collectively, all kinds of non-profit legal persons and funds and other institutions and organizations. Individual shareholders refer to ordinary natural person shareholders.
(3) Founding shareholders and ordinary shareholders
According to the time and conditions of obtaining shareholder qualification, it can be divided into founding shareholders and general shareholders. A founding shareholder refers to a person who subscribes for capital contribution for the purpose of organizing, establishing a company, signing an establishment agreement or signing and sealing the articles of association of the company, and assumes corresponding responsibilities for the establishment of the company. Founding shareholders are also called original shareholders. The general shareholder refers to the person who obtains the company's capital contribution or equity by means of capital contribution, inheritance, accepting gifts, etc., thus enjoying the shareholders' rights and undertaking the shareholders' obligations.
(4) Controlling shareholders and non-controlling shareholders
According to the number and influence of shareholders, they can be divided into controlling shareholders and non-controlling shareholders. Controlling shareholders are divided into absolute controlling shareholders and relative controlling shareholders. The controlling shareholder refers to the shareholder whose capital contribution accounts for 50% of the total limited liability capital or whose voting rights are sufficient to have a significant impact on the shareholders and the resolutions of the shareholders' meeting.
To sum up, it is Bian Xiao's relevant answer about what taxes shareholders should pay when borrowing from the company, hoping to help you.
Legal basis: Article 2 of the Individual Income Tax Law of People's Republic of China (PRC).
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;
(7) Income from property lease;
(8) Income from property transfer;
(9) Accidental income.