A listed company said in the announcement of share allotment and dividend distribution in early April that the company transferred capital reserve to all shareholders, and transferred 65,438+0.5 shares for every 65,438+00 shares. Non-tradable shareholders give up part of the transferred shares and transfer them to tradable shareholders as a consideration arrangement. At the same time, 2 bonus shares of 0.60 yuan (including tax) were distributed in cash for every 65,438+00 shares as 2005. Dividends and dividends have been paid and share capital has been increased, and a shareholder has purchased 65,438+10,000 shares of listed companies. Q: According to the plan implemented by the company, does the listed company withhold and pay the individual income tax of shareholders, and how? A: Dividends are the profits that shareholders regularly get from listed companies according to a certain proportion, while dividends are the residual profits that listed companies distribute to shareholders according to their shareholding ratio after distributing dividends. Getting dividends is the basic purpose of investors to invest in listed companies, and it is also the basic economic right of investors. According to the individual income tax law and its implementing regulations, the income from interest, dividends and bonuses refers to the income from interest, dividends and bonuses obtained by individuals with creditor's rights and equity, and the tax rate is 20%, and the unit that pays the income shall perform the withholding obligation in accordance with the provisions of the tax law. It should be noted here that the dividend distribution forms of a company can be cash, stock dividend, property dividend and liability dividend, but according to China's company law, listed companies can only adopt cash dividend and stock dividend, and there are generally seven dividend distribution forms of listed companies in China, namely cash dividend, stock dividend, cash dividend+stock dividend, cash dividend+capitalization, stock dividend+capitalization, and so on. Therefore, the following distinction should be made between tax exemption and withholding tax. 1. Personal income tax shall be temporarily exempted for the income such as shares and cash obtained by tradable shareholders from non-tradable shareholders during the share-trading reform. Split share structure means that the shares of listed companies in the A-share market are divided into non-tradable shares and tradable shares (commonly known as public shares) according to whether they can be listed and traded on the stock exchange. The purpose of non-tradable share reform is to solve the unreasonable ownership structure, provide institutional guarantee for the long-term healthy development of listed companies, and thus protect listed companies. First of all, it is clear here that consideration payment is not dividend distribution. The difference between consideration payment and dividend distribution of listed companies in the share-trading reform is that in the share-trading reform scheme, the sources of shares and cash paid by listed companies to tradable shareholders are paid by non-tradable shareholders, not from the company's after-tax profits or capital reserves, while listed companies pay dividends from their after-tax profits or capital reserves. In order to promote the development of the capital market and the full circulation of the stock market, and promote the smooth implementation of the pilot reform of the non-tradable shares, the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Tax Policies Related to the Pilot Reform of the Non-tradable Shares (Caishui [2005] 103) stipulates that the income paid by non-tradable shareholders to tradable shareholders through consideration in the non-tradable shares reform is temporarily exempted from personal income tax. Therefore, the non-tradable shareholders of the listed company's share-trading reform are arranged as consideration, and some of the transferred shares are given up, and personal income tax is temporarily exempted. Two. Dividends and capital reserves are converted into share capital as follows: Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on Individual Income Tax on Dividends (Caishui [2005] 102) and Supplementary Notice of the Ministry of Finance and State Taxation Administration of The People's Republic of China on Individual Income Tax Policy on Dividends (Caishui [2005] 107) stipulate that, From June 13, 2005, the individual income tax on dividends received by individual investors from listed companies (listed companies listed on Shanghai Stock Exchange and Shenzhen Stock Exchange) will be temporarily reduced by 50%. 1, personal income tax is paid at 20% for cash dividends. Cash dividend is the dividend paid to shareholders by listed companies in the form of money, and it is also the most common and common form of dividend. When distributing cash dividends, shareholders are required to pay personal income tax, and the tax amount is 20% of the cash dividends including tax. Therefore, according to the shares held by shareholders, 600 yuan's personal income tax should be paid [(100000 ÷10) × 0.6× 20 %× 50%]. 2. Personal income tax is not levied when the capital reserve fund is converted into share capital (except for the reserve fund formed by the income from this stock premium issuance). Capital reserve mainly includes capital premium or equity premium, acceptance of donated assets, equity investment preparation, capital transfer, foreign currency capital conversion difference and other capital reserves. The main purpose of capital reserve is to transfer capital. According to the Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on the Exemption of Individual Income Tax for Share-holding Enterprises to Increase Share Capital and Distribute Bonus Shares (Guo Shui Fa [1997]No. 198), the share capital increased by share-holding enterprises does not belong to dividend distribution, and the amount of share capital increased by individuals is not regarded as personal income and is not subject to individual income tax. State Taxation Administration of The People's Republic of China's "Reply on Personal Income Tax Due to the Value-added Income of Individual Shares in the Process of Transforming the Former Urban Credit Cooperatives into Urban Cooperative Banks" (Guo [1998] No.289) stipulates that "capital reserve" refers to the capital reserve formed by the income from issuing shares at a premium by joint-stock enterprises. The amount obtained by an individual from the transfer of the share capital shall not be levied as taxable income. However, other capital accumulation funds that do not meet this requirement should be allocated personal income, and personal income tax should be levied according to law. Therefore, if a listed company converts its capital reserve from non-stock premium issuance income into share capital, it shall pay 1 50000 shares [(10000 ÷10) ×15] according to the par value of the shares. In addition, when using surplus reserve fund to increase registered capital, personal income tax should also be paid. Surplus reserve includes statutory surplus reserve, statutory public welfare fund and arbitrary surplus reserve. Statutory surplus reserve is mainly used to make up losses and increase capital. According to the Reply of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Personal Income Tax Issues Concerning the Transfer of Surplus Provident Fund to Registered Capital (Guo Shui Han [1998] No.333), the Company transferred the statutory surplus reserve fund and any reserve fund drawn from after-tax profits to registered capital. In fact, the company distributes dividends and bonuses to shareholders, and shareholders increase their registered capital with dividends and bonuses. Therefore, individual income tax should be paid according to the item of "interest, dividend and bonus income" for the part that individual shareholders reinvest in the company (increase registered capital). 3. Stock dividends should be taxed. Stock dividend is a dividend distributed to shareholders by listed companies in the form of shares, also known as bonus shares. Dividends and bonuses distributed by listed companies in the form of shares are stipulated in the Provisions of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Several Issues Concerning the Collection of Individual Income Tax (Guo Shui Fa [1994] No.089): When distributing dividends and bonuses, joint-stock enterprises should pay dividends and bonuses due to individual shareholders in the form of shares (that is, distribute bonus shares), and the par value of shares distributed with bonus shares should be regarded as income. At the same time, according to the Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on the Exemption of Individual Income Tax for Share-holding Enterprises to Increase Share Capital and Distribute Bonus Shares (Guo Shui Fa [1997] 198No.), it is a dividend distribution for joint-stock enterprises to distribute bonus shares from surplus reserve fund, and the amount of bonus shares obtained by individuals should be taxed as individual income tax. Therefore, according to the shares held, the personal income tax should be withheld 2000 yuan [(10000 ÷10) × 2× 20 %× 50%]. In addition, it needs to be clear that the rights issue of listed companies is not a dividend or a rights issue. Generally speaking, rights issue means that all shareholders make additional investment according to their shareholding ratio, and the joint-stock company obtains funds to enrich its capital. Although the shares held by shareholders have increased after the rights issue, it is not the return of the company's investment in shareholders, so there is no problem of withholding taxes. A rights issue means that you have to take money to buy shares according to its share price and the proportion of rights issue.