It is a tax deduction based on the dividend income received by investors and the provisions of tax laws.
1. Principles of tax deduction for stock dividends
The tax deduction for stock dividends follows the provisions of the tax law and is implemented in accordance with the relevant provisions of personal income tax. The dividend income received by investors must pay corresponding personal income tax if it complies with the provisions of tax laws.
2. Stock dividend tax deduction standards
According to the Personal Income Tax Law, dividend income adopts a progressive tax rate system, and the specific tax rate is determined based on the amount of dividend income. Generally speaking, the higher the dividend income, the higher the tax rate. In addition, the tax law also stipulates the tax exemption amount and threshold, and investors can calculate the tax payable based on their own circumstances.
3. Stock dividend tax deduction methods
The stock dividend tax deduction methods mainly include self-declaration and withholding and payment. After receiving dividend income, investors must declare and pay personal income tax to the tax authorities on their own according to the time points stipulated in the tax law. At the same time, some listed companies or securities companies will also directly withhold and pay personal income tax when distributing dividends in accordance with tax laws.
IV. Precautions
When deducting tax on stock dividends, investors need to pay attention to the following points: First, ensure that the source of dividend income is legal and avoid illegal gains; secondly, understand And comply with tax law regulations to ensure the accuracy and timeliness of tax declaration and payment; finally, keep relevant vouchers and information for inspection by the tax authorities.
In summary:
Stock dividend tax deduction is a tax deduction based on the dividend income received by investors and the provisions of tax laws. Investors need to understand the provisions of tax laws, perform tax deductions in accordance with the relevant provisions of personal income tax, and pay attention to relevant matters to ensure legal compliance.
Legal basis:
"Individual Income Tax Law of the People's Republic of China"
Article 2 stipulates:
The following are Individual income must be paid personal income tax:
(1) Income from wages and salaries;
(2) Income from remuneration for labor services;
(3) Income from author remuneration ;
(4) Income from royalties;
(5) Income from operations;
(6) Income from interest, dividends and bonuses;
"Personal Income Tax Law of the People's Republic of China"
Article 3 stipulates:
Personal income tax rate:
(1) Comprehensive income is subject to an excess progressive tax rate of 3% to 45% (the tax rate table is attached); (2) Business income is subject to a progressive tax rate of 5% to 30% Five excess progressive tax rates (tax rate table attached);
(3) Interest, dividends, bonus income, property rental income, property transfer income and incidental income, the proportional tax rate is applicable, and the tax rate is 2% ten.