1. Individuals who hold dividends from listed company stocks are exempt from personal income tax according to the "Notice of the Ministry of Finance, State Administration of Taxation and China Securities Regulatory Commission on Issues Concerning Differentiated Personal Income Tax Policies on Dividends and Bonuses of Listed Companies" (Finance and Taxation {2015} No. 101): Individuals

For listed company stocks obtained from the public issuance and transfer market, if the holding period exceeds one year, personal income tax is temporarily exempted from dividend income.

If an individual acquires shares of a listed company from the public issuance and transfer market, and the holding period is within one month (including one month), the full amount of dividends and bonus income will be included in the taxable income; the holding period is within one month.

If it is more than 1 year (including 1 year), 50% of the taxable income will be included in the taxable income temporarily; the above income will be subject to a uniform personal income tax rate of 20%.

2. Individuals who hold dividends from shares of listed companies are exempt from personal income tax if they meet the conditions. According to the "Announcement of the Ministry of Finance, State Administration of Taxation and China Securities Regulatory Commission on continuing to implement the differentiated personal income tax policy for dividends from companies listed on the National Small and Medium-sized Enterprises Share Transfer System" (Ministry of Finance, State Administration of Taxation, China Securities Regulatory Commission)

Article 1 of the Meeting Announcement No. 78 of 2019) stipulates that shareholders of listed companies (NEEQ) whose shareholding period exceeds one year are exempt from personal income tax on dividends.

If an individual holds shares of a listed company and the holding period is less than one month (including one month), his or her dividend income will be temporarily reduced and included in the taxable income at 50%; the above-mentioned income shall be subject to a uniform tax rate of 20%.

Personal Income Tax.

The so-called listed company refers to an unlisted public company whose stocks are publicly transferred on the National Equities Exchange and Quotations; the shareholding period refers to the holding period from the day when an individual obtains the shares of a listed company to the day before the date of transfer and delivery of the shares.

3. Dividends distributed by foreign shareholders are exempt from personal income tax. According to the "Notice of the Ministry of Finance and the State Administration of Taxation on Several Policy Issues on Personal Income Tax" (Caishuizi {1994} No. 20), dividends and bonus income obtained by foreign individuals from foreign-invested enterprises are temporarily exempted.

levy personal income tax.

4. Individual industrial and commercial households, sole proprietorships, and partnerships do not pay personal income tax on dividends. According to the "Notice of the Ministry of Finance and the State Administration of Taxation on the Issuance of {Regulations on the Collection of Personal Income Tax for Investors in Sole Proprietorships and Partnerships}" (Caishui No. 200091)

Regulations: Sole proprietors and partnerships shall use the balance of the total income in each tax year after deducting costs, expenses and losses as the investor's personal production and operation income. Their production and operation income includes the income distributed by the enterprise to the individual investor.

and the income retained by the enterprise for the year.

Since the income from production and operation of sole proprietorships and partnerships has been calculated as the personal income tax of investors according to the "Income from Production and Operation of Individual Industrial and Commercial Households" project.

Therefore, sole proprietorships and partnerships do not need to pay personal income tax when they distribute after-tax profits.

5. No personal income tax is levied on fund dividends. Funds are generally operated by professional fund managers, which are more stable than individual operations.

There are two ways to distribute fund dividends, one is cash dividends, and the other is dividend reinvestment.

For dividends from stocks, dividend income, and interest income from corporate bonds that investors receive from fund distribution, personal income tax will no longer be withheld and paid by listed companies and bond-issuing companies when they distribute dividends, bonuses, and interest to the fund.

6. Distinguished shareholders pay dividends to dormant shareholders and do not pay personal income tax. In practice, the tax authorities regard the prominent shareholders as the tax payers for equity holdings. This is the attitude of most tax authorities. The advantage of this form of taxation is that it is convenient

In tax collection and administration, there is no need to check the authenticity of the entrusted holding agreement.

When a prominent shareholder transfers dividends to a dormant shareholder, and when the dormant shareholder is a natural person, Article 2 of the "Individual Income Tax Law of the People's Republic of China" stipulates the circumstances under which individuals must pay personal income tax.

If a dormant shareholder obtains dividends paid by a prominent shareholder, it does not fall under the circumstances stipulated in Article 2 and is subject to personal income tax.

7. The enterprise does not pay personal income tax when transferring personal dividends on behalf of the enterprise. According to the "Announcement of the State Administration of Taxation on Income Tax Issues Concerning the Transfer of Restricted Shares of Listed Companies" (State Administration of Taxation Announcement No. 39 of 2011), due to equity split

The reform resulted in restricted shares that were originally invested by individuals and held on behalf of the enterprise. The income derived from the transfer of the above-mentioned restricted shares should be calculated and paid as taxable income of the enterprise.

The balance of income from the transfer of restricted shares after the company has completed its tax obligations will not be taxed when transferred to the actual owner.