How to pay taxes on corporate profit dividends
Corporate profit dividends refer to the company's distribution of the current year's earnings to shareholders in a certain proportion and manner. When making dividends, shareholders need to pay a certain amount of taxes. In this article, Shuangqian Intellectual Property Consultant will introduce the tax payment method and related tax regulations for corporate profit dividends.
1. Taxation method of corporate profit dividends.
When a corporate profit is divided, shareholders need to pay individual income tax according to a certain percentage. Specifically, according to the regulations of the State Administration of Taxation, dividends received by shareholders should be taxed in the following ways:
1.When the shareholder is a natural person, he or she shall pay individual income tax at a rate of 20%;
2.When the shareholder is a company, it shall pay enterprise income tax at a rate of 25%;
3.When the shareholder is a partnership, the profits of the partnership shall be distributed to each partner in accordance with the principle of "first divide and then tax", and each partner shall pay individual income tax at the rate of 20%.
2. Tax provisions on corporate profit dividends.
Shareholders also need to pay attention to the following tax regulations when making corporate profit dividends:
1.The dividends received by shareholders should be the company's after-tax profits, that is, the profits after the company has paid enterprise income tax;
2.The dividends received by shareholders shall be the balance after the company's profit distribution in accordance with the law, and shall not exceed the company's distributable profits in the current year;
3.The dividends received by shareholders shall be the balance after the company's profit distribution in accordance with the law, and shall not exceed the company's distributable profits in the current year;
4.The dividends received by shareholders shall be the balance after distribution by the company in accordance with the provisions of the law, and shall not exceed the company's distributable profit for the current year;
5.The dividends received by shareholders shall be the balance after distribution by the company in accordance with the provisions of the law, and shall not exceed the company's distributable profit for the current year;
6.The dividends received by shareholders shall be the balance after distribution by the company in accordance with the provisions of the law, and shall not exceed the company's distributable profit for the current year;
In short, corporate profit dividends are an important relationship between the company and its shareholders. When distributing dividends, shareholders should pay the corresponding taxes in accordance with the tax regulations and ensure that the company's profit distribution is in accordance with the law and business ethics. At the same time, the company should also formulate a reasonable profit distribution plan to protect the legitimate rights and interests of shareholders.