1. Do shareholders need to pay taxes when sharing profits?
There is no need to pay taxes on profit distribution.
If the shareholders are legal persons, there is no need to consider taxes when distributing profits. If there are differences in tax rates, some shareholders will declare and pay by themselves.
If the shareholders are natural persons, the individual income tax shall be withheld and remitted when distributing profits. The tax rate is 20%, and now listed companies implement it according to 10%, and many places also implement it according to 10% tax rate.
If it is distributed overseas, it needs to be taxed. Dividends and bonuses earned by foreign individuals from foreign-invested enterprises are temporarily exempt from personal income tax.
Second, the financial steps of profit distribution:
1 The surplus reserve drawn by the enterprise according to regulations shall be debited to this account (statutory surplus reserve and arbitrary surplus reserve) and credited to the account "surplus reserve-statutory surplus reserve and arbitrary surplus reserve".
The reserve fund, enterprise development fund, employee bonus and welfare fund extracted by foreign-invested enterprises according to regulations shall be debited to the subjects (reserve fund, enterprise development fund, employee bonus and welfare fund) and credited to the subjects such as "surplus reserve fund, enterprise development fund" and "payable employee salary".
2. The cash dividends or profits distributed to shareholders or investors by the resolution of the shareholders' meeting or similar institutions shall be debited to the account (cash dividends or profits payable) and credited to the account of "dividend payable".
After going through the formalities of capital increase, the shareholders' meeting or similar organization decides to distribute the stock dividends to the shareholders, and debit this account (dividend to share capital) and credit it to the "equity" account.
3. When using surplus reserve to make up losses, debit the title of "surplus reserve-statutory surplus reserve or arbitrary surplus reserve" and credit this title (surplus reserve to make up losses).
At the end of the fourth year, the enterprise shall transfer the net profit realized in the whole year from the "current year's profit" account to the "profit distribution-undistributed profit" account, and transfer the balance of other related detailed accounts under the "profit distribution" account to the "undistributed profit" account. After carry-forward, the credit balance of the "Undistributed Profit" detail account is the accumulated undistributed profit amount; If it is a debit balance, it means the accumulated uncompensated loss amount. After the carry-over, except for the "undistributed profit" detailed account, there should be no balance in other detailed accounts.
Three. Calculation method of shareholders' dividends:
1. Individual shareholders shall pay personal 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 shall pay enterprise income tax at the rate of 10% on dividends obtained from China resident enterprises.
To sum up, profit sharing is particularly important for shareholders. Generally, before distribution, it is necessary to consider whether to deduct tax. These two are the conditions for deciding whether to pay taxes, especially for overseas corporate shareholders. So different situations will be handled differently.