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If a company opens a securities account to trade stocks, does it have to pay tax on the investment income?

Taxes must be paid. When investing, buying and selling securities and stocks, you have to pay stamp duty.

Taxation of investment income should differentiate between different situations.

Investment income from investing in treasury bonds is exempt from income tax, while other investments such as equity investments are taxable; for returned investment income, it must also be confirmed whether it is before tax or after tax.

For example, after tax, you first need to check whether the corporate income tax rate of the invested company is the same as your company.

If they are the same, no additional tax is required.

If it is different (the tax rate of the invested enterprise is lower than your company's tax rate), the tax will be paid based on the difference. If it is pre-tax, it will be included in your company's profits for tax.

1. The stamp tax on stock transactions is 1‰ of the transaction amount, and the stamp tax is only levied at the time of sale.

Stamp duty is a fixed tax set by the state, and stock trading commissions are determined by securities companies and investors through negotiation.

Stamp duty is the same for everyone, but councils can vary significantly.

For example, if you sell stocks for 10,000 yuan, you need to collect a stamp tax of 10,000*1‰=10 yuan.

Stock transaction stamp tax is developed from ordinary stamp tax and is a tax specifically levied on the amount of stock transactions.

Chinese tax law stipulates that stamp duty is levied on the amount calculated based on the actual market price at the time of establishment based on the transfer of equity established through transactions, inheritance, or gifts in the securities market.

2. The stamp tax on stock transactions is taxed by the limited company that issues the stock, which mainly includes limited liability companies and limited liability companies.

Stamp duty on shares is calculated based on the face value of the shares.

Since stocks can be issued at a premium, it is also stipulated that if the actual issuance price of the stock is higher than its face value, tax will be calculated based on the actual issuance price.

To facilitate calculation and increase transparency, a proportional tax rate is adopted, which generally results in a lighter tax burden.

3. Stamp tax on stock transactions is a means for the government to increase tax revenue for China’s securities market.

Stamp duty increases investors' costs, making it a natural tool for governments to regulate markets.

Stock transaction stamp tax is developed from ordinary stamp tax and is a tax specifically levied on the amount of stock transactions.

Chinese tax law stipulates that stamp duty is levied on the amount calculated based on the actual market price at the time of establishment based on the transfer of equity established through transactions, inheritance, or gifts in the securities market.