Generally speaking, for the purpose of protecting and investing in dividend capital market, the tax rate of dividend income is higher than that of capital gains. For example, in China, if an individual obtains shares of a listed company from the public offering and transfer market, and the holding period is within 1 month (including 1 month), the dividends are fully included in the taxable income; If the shareholding period exceeds 1 month to 1 year (including 1 year), the temporary reduction of 50% will be included in the taxable income; The above income is uniformly taxed at the rate of 20%. Individuals engaged in the transfer of financial commodities, including buying and selling foreign exchange, securities, funds, trusts and wealth management products, are exempt from value-added tax. This shows that the dividend income tax rate is higher than the capital gains tax rate. In addition, the theory of tax difference in dividend theory holds that the tax rate of dividend income is higher than that of capital gains. Even in the case of the same tax rate, the capital gains tax is paid only when it is realized. Compared with the cash dividend distribution tax, it still has the advantage of delaying tax payment. Therefore, enterprises should adopt a low dividend policy.

This is the view of tax difference theory. He is a theoretical point of view.

The following information is expected to help you:

The difference between dividend income tax and capital gains income tax: dividend income tax refers to the tax paid by enterprises for dividends, while capital gains tax refers to the tax paid by the profit difference between stock trading. The difference between the two is that the capital gains tax rate is generally value-added income, so the capital gains tax rate is generally levied in the transfer link; The dividend income tax rate is profit income, so it is generally levied during the holding period.

Capital gains tax refers to a temporary tax levied on the realized capital gains of taxpayers who do not specialize in buying and selling real estate and securities. In order to avoid the inhibitory effect of tax on investment, capital gains tax generally adopts a lower proportional tax rate. Capital gains refer to the gains from the sale or transaction of capital goods such as stocks, bonds, real estate, land or land use rights, that is, the appreciation of assets. Capital gains tax is a tax levied on capital gains. Simply put, it is the spread income (capital gain) that investors get in securities trading.

The dividend yield, also known as the rate of return, refers to the ratio of the dividend paid by the joint-stock company in cash to the purchase price of the stock (the original market price per share). This rate of return can be used to calculate the dividend rate already obtained and predict the possible dividend rate in the future. Holding period yield refers to the ratio of the sum of dividend income and bid-ask spread during the period when investors hold stocks to the purchase price of stocks. The dividend yield is an important reference standard for choosing income-oriented stocks. If the annual dividend yield exceeds the 1 year bank deposit rate for many years, the stock can basically be regarded as a profit-making stock, and the higher the dividend yield, the more attractive it is.