Dividend is a way to distribute the current year's income to shareholders after withdrawing statutory provident fund, public welfare fund and other items according to regulations.

According to the individual income tax law, the income tax rate of interest, dividends and bonuses is 20%. Individual shareholders shall pay 17% personal income tax when they receive dividends and bonuses distributed by the enterprise. So shareholders' dividends look impressive on the surface, but they shrink greatly after paying taxes. Shareholders of the company can be individual shareholders or corporate shareholders.

Generally speaking, after an enterprise realizes its annual profits, according to the enterprise income tax law, after-tax profits are distributed to shareholders according to regulations. With such a high tax rate, it is necessary to learn some common basic skills about how to plan shareholders' dividends.