According to China's company law, the shareholders of a company can be individual shareholders or enterprise corporate shareholders. Generally speaking, after an enterprise pays enterprise income tax according to regulations, its after-tax profits should be distributed to shareholders' after-tax dividend income obtained from the invested enterprise according to regulations. How to pay taxes? 1. Individual shareholders shall pay individual income tax on dividends. The individual income tax law stipulates that interest, dividends and bonus income shall be subject to individual income tax, and the proportional tax rate shall apply. However, dividends received by individual shareholders from listed companies can be taxed at half. Article 1 of the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Relevant Policies of Individual Income Tax on Dividends and Bonuses (Caishui []No.) stipulates that the income from dividends and bonuses obtained by individual investors from listed companies shall be temporarily reduced and included in the personal taxable income, and individual income tax shall be levied according to the current tax law. Second, foreign individuals from foreign companies.
Dividends paid by shareholders of a company are also taxable. According to the individual income tax law, generally speaking, the after-tax profits of enterprises should be distributed to shareholders. Personal income tax shall also be levied on the interest, dividends and bonus income obtained by shareholders. Calculation method of shareholder dividends: 1. Individual shareholders pay individual income tax at 20% of the dividends due. 2. Dividends obtained from listed companies can be taxed by half. 3. No matter whether the dividends received by foreigners are listed companies or not, there is no need to pay taxes. 4, resident enterprises from other resident enterprises to obtain investment dividend income tax-free. 5. Shareholders of overseas non-resident enterprises receive dividends from China resident enterprises in 2008 and beyond, and pay enterprise income tax at the rate of 10%.
Is it necessary to pay tax on the profit distribution after the general partnership pays personal income tax?
General partnership enterprises do not need to pay personal income tax for year-end dividends. A general partnership refers to a partnership composed of general partners, who are jointly and severally liable for the debts of the partnership in accordance with the provisions of the Partnership Law. According to Guo Fanuo's Notice of the State Council on Income Tax Collection of Sole proprietorship enterprises and partnership enterprises. : "From now on, the enterprise income tax will cease to be levied on partnership enterprises, and the income from the production and operation of its investors will be levied according to the income from the production and operation of individual industrial and commercial households." When declaring personal income tax, the partnership enterprise that collects the audit should collect personal income tax according to the "income from the production and operation of individual industrial and commercial households", fill out the "Individual Income Tax Return for Investors of Sole proprietorship and Partnership Enterprise", pay in advance within the next day after the end of the quarter, and make final settlement at the end of the year. Enterprises that pay taxes according to the collection rate shall declare and pay monthly, and declare and pay within the next day after the end of the month.
General partnership enterprises do not need to pay personal income tax for year-end dividends. A general partnership refers to a partnership composed of general partners, who are jointly and severally liable for the debts of the partnership in accordance with the provisions of the Partnership Law. According to Guo Fanuo's Notice of the State Council on Income Tax Collection of Sole proprietorship enterprises and partnership enterprises. : "From now on, the enterprise income tax will cease to be levied on partnership enterprises, and the income from the production and operation of its investors will be levied according to the income from the production and operation of individual industrial and commercial households." When declaring personal income tax, the partnership enterprise that collects the audit should collect personal income tax according to the "income from the production and operation of individual industrial and commercial households", fill out the "Individual Income Tax Return for Investors of Sole proprietorship and Partnership Enterprise", pay in advance within the next day after the end of the quarter, and make final settlement at the end of the year. Enterprises that pay taxes at the tax rate shall pay taxes at the end of each month and the day after tomorrow.
Is it necessary to pay personal income tax on undistributed profits when an enterprise cancels?
Handling of sole proprietorship partnership:
Although an enterprise belongs to an individual investment enterprise, it is necessary to distinguish whether it belongs to a sole proprietorship (partnership) enterprise or a general limited liability company enterprise, and the treatment of the two is different.
In the case of individual proprietorship or individual partnership, the following provisions shall apply:
Article 16 of the Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China, on Printing and Distributing the Provisions on Individual Income Tax for Investors of Sole proprietorship Enterprises and Partnership Enterprises (CaishuiziNo. 16). ) stipulates that when the enterprise is liquidated, the investor shall settle the relevant tax matters with the competent tax authorities before canceling the industrial and commercial registration. The liquidation income of an enterprise shall be regarded as the income from annual production and operation, and the individual income tax shall be paid by investors according to law.
The liquidation income mentioned in the preceding paragraph refers to the part of the fair value of all assets or property that exceeds the paid-in capital after deducting all liquidation expenses, losses, liabilities and profits retained in previous years.
In this case, the profits made by an individual from a sole proprietorship enterprise can be handled according to the above provisions.
2. If it is not a sole proprietorship enterprise or individual partnership enterprise, that is, the enterprise invested by individuals you mentioned pays enterprise income tax, the income after liquidation you mentioned shall be treated in accordance with the following provisions:
Article 4 of the Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China, on Several Issues Concerning the Treatment of Enterprise Income Tax in Enterprise Liquidation Business (Caishui [2004]11No.). ) stipulates that the balance of the realizable value or transaction price of all assets of an enterprise after deducting the tax basis of assets, liquidation expenses and related taxes and fees, plus the profit and loss of debt settlement, is the liquidation income.
During the whole liquidation period, an enterprise shall calculate the liquidation income as an independent tax year.
At the same time, for the accumulated undistributed profits distributed by individual investors from enterprise liquidation income, the essence is the dividend income obtained by individuals from the company, and individual income tax needs to be paid according to dividends.
How to deal with the undistributed profits after the cancellation of the approved collection enterprise?
Some enterprises have been consulted and approved to levy interest, dividends and personal income tax on enterprises and individual investors, which have been approved and paid according to the requirements of tax authorities, and there are still undistributed profits in their books. What should the enterprise do if it wants to cancel? At present, the personal income tax on dividends collected by enterprises according to the proportion of individual investors' investment is generally levied in the form of a certain proportion of operating income, and no personal income tax is levied on the book dividend distribution. The dividend distribution of the approved enterprise is not collected according to the facts, but in the form of usual collection. Although some personal income tax has been paid, enterprises have evaded tax-related risks and brought loopholes to management.
Enterprise income tax adopts the method of approved collection. When canceling the tax registration, it is necessary to declare the liquidation income in order to deal with the undistributed profits on the books. The Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on Several Issues Concerning the Treatment of Enterprise Income Tax in Enterprise Liquidation (Caishui [2009] No.60) stipulates: "According to the provisions of Articles 53 and 55 of the Enterprise Income Tax Law and Article 11 of the Implementation Regulations of the Enterprise Income Tax Law, it is stipulated that the income tax treatment in enterprise liquidation refers to the liquidation when the enterprise stops operating, ends its own business, disposes of its assets, pays off its debts and distributes the remaining property to the owners.
It is stipulated that all enterprises that need liquidation according to the Company Law and the Enterprise Bankruptcy Law shall declare liquidation income, and the balance of the realizable value or transaction price of all assets of the enterprise after deducting the tax basis of assets, liquidation expenses and related taxes and fees, plus the profit and loss of debt settlement, is liquidation income. Calculate the liquidation income as an independent tax year.
The Company Law, Enterprise Bankruptcy Law and other laws and regulations require that all enterprises that need liquidation should be treated with liquidation income tax, regardless of whether they are approved or not. Therefore, when the approved levy enterprise is approved for cancellation, it should handle liquidation income tax. (1) The amount of the remaining assets distributed by the shareholders of the liquidation enterprise is equivalent to the part of the accumulated undistributed profits and accumulated surplus reserve of the liquidation enterprise calculated according to the proportion of the shares held by the shareholders, and is recognized as dividend income; (2) If the balance of the remaining assets after deducting dividends exceeds or is lower than the investment cost of shareholders, it shall be recognized as the gain or loss of shareholders' investment transfer.
In the actual collection and management, this situation also happens from time to time. Due to the approved collection, enterprises do not accurately record the costs and expenses according to the regulations, and often the expenses are not recorded in the accounts, and the income is accurately recorded according to the invoices, which leads to the inflated undistributed profits and the increase of personal income tax in liquidation.
Some enterprises have been consulted and approved to levy interest, dividends and personal income tax on enterprises and individual investors, which have been approved and paid according to the requirements of tax authorities, and there are still undistributed profits in their books. What should the enterprise do if it wants to cancel? At present, personal income tax on dividends collected by enterprises according to the proportion of individual investors' investment is generally collected in the form of a certain proportion of operating income, and personal income tax is no longer levied on dividend distribution reflected in books. The dividend distribution of the approved enterprise is not collected according to the facts, but in the form of usual collection. Although some personal income tax has been paid, enterprises have evaded tax-related risks and brought loopholes to management. Enterprise income tax adopts the method of approved collection. When canceling the tax registration, it is necessary to declare the liquidation income in order to deal with the undistributed profits on the books. The Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on Several Issues Concerning the Treatment of Enterprise Income Tax in Enterprise Liquidation (Caishui [2009] No.60) stipulates: "According to the provisions of Articles 53 and 55 of the Enterprise Income Tax Law and Article 11 of the Implementation Regulations of the Enterprise Income Tax Law, it is stipulated that the income tax treatment in enterprise liquidation refers to the liquidation when the enterprise stops operating, ends its own business, disposes of its assets, pays off its debts and distributes the remaining property to the owners. It is stipulated that all enterprises that need liquidation according to the Company Law and the Enterprise Bankruptcy Law shall declare liquidation income, and the balance of the realizable value or transaction price of all assets of the enterprise after deducting the tax basis of assets, liquidation expenses and related taxes and fees, plus the profit and loss of debt settlement, is liquidation income. Calculate the liquidation income as an independent tax year. The Company Law, Enterprise Bankruptcy Law and other laws and regulations require that all enterprises that need liquidation should be treated with liquidation income tax, regardless of whether they are approved or not. Therefore, when the approved levy enterprise is approved for cancellation, it should handle liquidation income tax. (1) The amount of the remaining assets distributed by the shareholders of the liquidation enterprise is equivalent to the part of the accumulated undistributed profits and accumulated surplus reserve of the liquidation enterprise calculated according to the proportion of the shares held by the shareholders, and is recognized as dividend income; (2) If the balance of the remaining assets after deducting dividends exceeds or is lower than the investment cost of shareholders, it shall be recognized as the gain or loss of shareholders' investment transfer.
How to calculate personal income tax when undistributed profits are converted into share capital?
The calculation formula of individual tax on wage income is: tax payable = (wage and salary income-"five insurances and one gold"-deduction) × applicable tax rate-quick deduction. Undistributed profits can be directly transferred to paid-in capital. Moreover, as long as the resolution of the board of directors is issued, the business license can be changed directly to the industrial and commercial department without going through the capital verification procedures. Undistributed profit as a prerequisite for capital increase is that the enterprise distributes undistributed profit to shareholders first, and after the natural person shareholders pay personal income tax according to law, they invest in the enterprise with monetary funds in accordance with relevant regulations. Undistributed profit is the income of investors, and the act of transferring undistributed profit into share capital is essentially a transformation form of investment income distribution. After paying individual income tax according to law, natural person shareholders may reinvest in the enterprise in accordance with relevant regulations. This not only conforms to the provisions of the company law on monetary investment, but also conforms to the original distribution of investment income.
According to Article 3 of the Individual Income Tax Law, the income tax rate of interest, dividends and bonuses is 20%. Converting undistributed profits into share capital is also a form of profit distribution.
According to the Ministry of Finance's Notice of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Extending the Pilot Tax Policy of National Independent Innovation Demonstration Zone to the Nationwide Implementation (Caishui [2015]16No.), if an individual obtains the transferred share capital, personal income tax will be levied at a reduced rate of 20% according to the items of "income from interest, dividends and bonuses". At the same time, it is stipulated that small and medium-sized high-tech enterprises in China will increase undistributed profits, surplus reserves and capital reserves from 20 16 1 to individual shareholders. If it is really difficult for individual shareholders to pay personal income tax at one time, they can make their own tax payment plans by installments according to the actual situation, and pay them in installments within no more than five calendar years (inclusive), and submit relevant materials.