What does it mean to be exempt from personal income tax for holding shares for one year

It refers to the time of dividends, and dividends are exempt from personal income tax.

There are no fancy.

The annual salary is 1 yuan, and the scattered field is exempt from dividends and dividends if the shares are held for more than one yearIndividual income tax。This phrase is withPersonal income taxrelated, the specific explanation is as follows:

If the holding period exceeds 1 year, the income from dividends and dividends is temporarily exempted from individual income tax.

If the shares are held for 1 month to 1 year, the tax burden will be paid.

is 10%. If the shareholding is less than 1 month, the tax burden is 20%.

Therefore, the longer an individual investor holds the shares, the lower the tax burden on the individual income tax on dividends and dividends.

Holding Time Calculation:

1. Calculated from the time of ** to selling, 1 year before the ex-dividend date, sold on the ex-dividend date, free of individual income tax.

2. **The time is less than one year to the ex-dividend date, but it is not sold, and it is enough for one year, and this part is also exempt from individual income tax.

Tax Deduction Rules for A Shares:

1.For those who have held shares for more than 1 year, they are temporarily exempted from individual income tax.

2.For those who hold shares for 1 month (including 1 month), individual income tax will be levied at a rate of 20% according to the amount of dividends.

3.If the holding period is between 1 month and 1 year (including 1 year), the individual income tax will be levied at a rate of 20% reduced by half (10%) according to the amount of dividends.

Hong Kong stock tax deduction rules:

10% tax on H shares, 20% tax on Hong Kong stocks.

Tax exemption for foreigners, tax exemption for investment ETFs.

The common denominator: all are exclusive.

Differences: A share dividends will be received on the same day, and Hong Kong stock dividends will be received within one month.

Legal Analysis: Yes. Since June 13, 2005, the dividends and bonuses obtained by individuals from listed companies have been temporarily reduced to 50% of the taxable income of individuals, and then the individual income tax is calculated and paid at a rate of 20%.

Legal basis: Law of the People's Republic of China on the Administration of Tax Collection Article 25 Taxpayers must truthfully handle tax declarations in accordance with the provisions of laws and administrative regulations or the declaration period and content determined by the tax authorities in accordance with the provisions of laws and administrative regulations, and submit tax returns, financial statements and other tax payment materials required by the tax authorities according to actual needs.

The withholding agent shall, in accordance with the provisions of laws and administrative regulations or the declaration period and content determined by the tax authorities in accordance with the provisions of the laws and administrative regulations, truthfully submit the tax withholding and remitting, collection and remittance report form and other relevant materials required by the tax authorities according to actual needs.

Employees' ** income is subject to personal income tax.

Article 3 of the Individual Income Tax Law of the People's Republic of China on the tax rate of individual income tax: (1) For comprehensive income, the excess progressive tax rate of 3% to 45% of the total income shall be applied (the tax rate table is attached); 2) For business income, an excess progressive tax rate of 5% to 35% shall be applied (the tax rate table is attached); 3) Income from interest, dividends and bonuses, income from property leases, income from property transfer and incidental income shall be subject to a proportional tax rate of 20%.

Implemented on September 8, 2015, dividends and dividends with a holding period of more than 1 year are exempt from individual income tax.

Notice on Issues Concerning the Differentiated Individual Income Tax Policy on Dividends and Dividends of Listed Companies.

Cai Shui [2015] No. 101.

Finance Departments (Bureaus), State Taxation Bureaus, Local Taxation Bureaus of all provinces, autonomous regions, municipalities directly under the Central Government, and cities specifically designated in the state plan, Finance Bureau of Xinjiang Production and Construction Corps, Shanghai and Shenzhen Stock Exchanges, National Small and Medium-sized Enterprises Share Transfer System Co., Ltd., and China ** Registration and Clearing Corporation:

With the approval of ***, the relevant issues such as the differentiated individual income tax policy on dividends and dividends of listed companies are hereby notified as follows:

1. If an individual obtains a listed company from the public offering and transfer market** and holds the shares for more than one year, the dividend income is temporarily exempted from individual income tax.

If an individual obtains a listed company** from the public offering and transfer market, and the holding period is less than 1 month (including 1 month), the dividend income shall be fully included in the taxable income; If the holding period is more than 1 month to 1 year (including 1 year), 50% of the shareholding period shall be temporarily reduced to include the taxable income; The above-mentioned income is subject to individual income tax at a uniform rate of 20%.

2. When a listed company distributes dividends and dividends, if it holds shares for less than 1 year (including 1 year), the listed company will not withhold individual income tax for the time being; When the individual is transferred, the registration and clearing company calculates the tax payable according to the holding period, and the company and other share custodians deduct it from the personal fund account and transfer it to the registration and clearing company, and the registration and clearing company shall transfer it to the listed company within 5 working days of the next month, and the listed company shall declare and pay it to the competent tax authority within the statutory declaration period of the month in which the tax is received.

3. Other operational matters related to the differentiated individual income tax policy on dividends and dividends of listed companies shall be implemented in accordance with the relevant provisions of the Notice of the Ministry of Finance, the State Administration of Taxation and the China Securities Regulatory Commission on Issues Concerning the Implementation of the Differentiated Individual Income Tax Policy on Dividends and Dividends of Listed Companies (CS 2012 No. 85).

4. The differentiated individual income tax policy on dividends and dividends of companies listed on the National Small and Medium-sized Enterprises Share Transfer System shall be implemented in accordance with the provisions of this notice. Other relevant operational matters shall be implemented in accordance with the relevant provisions of the Notice of the Ministry of Finance, the State Administration of Taxation and the China Securities Regulatory Commission on Issues Concerning the Implementation of the Differentiated Individual Income Tax Policy on Dividends and Dividends of Companies Listed on the National Small and Medium-sized Enterprise Share Transfer System (CS 2014 No. 48).

5. This notice shall come into force on September 8, 2015.

If a listed company distributes dividends and dividends after the equity registration date is September 8, 2015, the dividend income shall be implemented in accordance with the provisions of this notice. On the date of implementation of this notice, the holding time of listed companies already held by individual investors** in their accounts shall be calculated from the date of acquisition.

Ministry of Finance, State Administration of Taxation, China Securities Regulatory Commission.

September 7, 2015.