According to the individual income tax law, generally speaking, the after-tax profits of enterprises should be distributed to shareholders. Personal income tax shall also be levied on the interest, dividends and bonus income obtained by shareholders. Calculation method of shareholder dividends: 1. Individual shareholders pay individual income tax at 20% of the dividends due. 2. Dividends obtained from listed companies can be taxed by half. 3. No matter whether the dividends received by foreigners are listed companies or not, there is no need to pay taxes. 4, resident enterprises from other resident enterprises to obtain investment dividend income tax-free. 5. Shareholders of overseas non-resident enterprises receive dividends from China resident enterprises in 2008 and beyond, and pay enterprise income tax at the rate of 10%.

Legal objectivity:

Article 3 of the Individual Income Tax Law: (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%.