Personal income tax is required. Individual proprietorship enterprises do not have to pay and distribute personal income tax for year-end dividends, because the distribution is after-tax net profit. A sole proprietorship enterprise refers to an enterprise that is funded, owned and controlled by an individual, bears business risks and enjoys all business benefits. The investors of a sole proprietorship enterprise shall bear unlimited liability for the debts of the enterprise.

Legal objectivity:

Individual Income Tax Law of the People's Republic of China

Article 2 Individual income tax shall be paid on the income of the following individuals:

1. Income from wages and salaries;

Two. Income from the production and operation of individual industrial and commercial households;

Three. Income from contracted operation and lease operation of enterprises and institutions;

4. Income from remuneration for labor services;

5. remuneration income;

6. Royalty income;

7. Income from interest, dividends and bonuses;

8. Property rental income;

9. Income from property transfer;

X. contingent income;

Eleven, other income determined by the financial department of the State Council.

Article 3 The tax rate of individual income tax:

1. Income from wages and salaries is subject to the progressive tax rate of 5% to 45% (the tax rate table is attached).

Two, the income from the production and operation of individual industrial and commercial households and the income from the contracted operation and lease operation of enterprises and institutions shall be subject to an excessive progressive tax rate of 5% to 35% (the tax rate table is attached).

3. The income from remuneration for writing shall be taxed at a proportional rate of 20%, with a reduction of 30% according to the tax payable.

4. Income from labor remuneration is subject to the proportional tax rate of 20%. If the one-time income from labor remuneration is abnormally high, it may be levied, and the specific measures shall be formulated by the State Council.

5. Income from royalties, interest, dividends, bonuses, property leasing, property transfer, accidental income and other income shall be subject to a proportional tax rate of 20%.