Do you need to pay any tax on fund dividends?
No need.
Investors who pay dividends to the fund do not have to pay taxes, because the funds have been withheld before the listed company distributes dividends to the fund. Because of this, many investors like to buy stocks before the dividend registration date of listed companies, and the risk to be borne by this behavior is actually relatively large. Even if the dividend is high, after deducting taxes and fees, a slight fluctuation of the fund may bring losses.
Fund dividends are mainly divided into two ways: cash dividends and dividend reinvestment. Cash dividend refers to the direct transfer of funds into investors' accounts in the form of cash, and the funds will generally be transferred to securities accounts after liquidation in the evening of the trading day before the dividend date; Dividend reinvestment refers to the conversion of fund dividend income into fund share, which increases the share of investors' positions and will generally be paid to the fund account on the trading day after dividend payment.
Conditions for enjoying fund dividends
If the equity registration date is T, the target of income distribution is all fund holders registered on T, that is, the fund shares registered on T enjoy the right to distribute fund dividends. Therefore, the fund shares subscribed and converted on T-day do not enjoy the dividend distribution right, while the fund shares redeemed and converted on T-day enjoy the dividend distribution right.
China's fund trading rules are similar to those of stocks. For example, a fund bought on T day can be sold on T+ 1 day. (except for T+0 transaction), the fund sold on T day will arrive on the same day, and T+ 1 day is desirable.