According to Articles 2 and 3 of the Individual Income Tax Law of the People's Republic of China, individual shareholders shall apply a tax rate of 20% to the after-tax profits of the company.

According to Article 8 of the Individual Income Tax Law of the People's Republic of China, enterprises that distribute and pay interest, dividends and bonuses to individual shareholders shall withhold individual income tax when paying.

In accordance with the provisions of Article 9 of the Individual Income Tax Law of the People's Republic of China, the monthly tax withheld by withholding agents and the monthly tax payable by taxpayers who declare themselves shall be turned over to the state treasury within seven days of the following month, and tax returns shall be submitted to the tax authorities.

Personal income tax is the general name of legal norms to adjust the social relations between tax authorities and natural persons (residents and non-residents) in the process of personal income tax collection and management.

Applicable tax rate

Individual income tax has three different tax rates according to different tax items:

Income from wages and salaries shall be taxed at an excessive progressive tax rate of 7 levels and calculated according to the monthly taxable income. The tax rate is graded according to the taxable income of individual's monthly salary and salary, with the highest level being 45%, the lowest level being 3%, and the ***7 level.

The income from production and operation of individual industrial and commercial households and the application of 5-level excess progressive tax rate to enterprises and institutions. The income from production and operation of individual industrial and commercial households and the annual taxable income from contracted operation and leased operation of enterprises and institutions are divided into grades, the lowest level is 5%, the highest level is 35%, and the * * * level is 5.

Proportional tax rate. Personal income tax is levied on individual income from remuneration for writing, remuneration for labor services, royalties, interest, dividends and bonuses, income from property leasing, income from property transfer, accidental income and other income, and the proportional tax rate of 20% is applicable. Among them, the proportional tax rate of 20% is applicable to the income from remuneration for manuscripts, and the tax payable is reduced by 30%.

If the one-time income from labor remuneration is abnormally high, in addition to the tax of 20%, the taxable income exceeds 20,000 yuan to 50,000 yuan, and the taxable amount is calculated according to the provisions of the tax law, and then 50% is levied according to the taxable amount; More than 50 thousand yuan, plus 100%. "

References:

Baidu Encyclopedia: Personal Income Tax