What Is a Dividend Tax?

Dividend dividend tax refers to the taxation of dividends of listed companies. For long-term investors more than one year, dividend income is temporarily exempted from personal income tax; for investors who buy and sell short-term within one month, dividend tax is doubled.

Dividend tax

Dividends

Dividend tax means right

With the approval of the State Council, starting from January 1, 2013, the individual income tax policy will be implemented on the stocks of listed companies obtained from the public issuance and transfer of stocks, and dividend income will be based on the length of time the shares are held. For holding shares for more than 1 year, the tax burden is 5%; for holding shares for 1 month to 1 year,

Regarding the news of differentiated levy of dividends and dividends, market participants generally regard it as favorable, and believe that it can encourage long-term investment, curb short-term speculation, and promote the long-term healthy development of the capital market. Li Daxiao, director of the Anglo-Asian Securities Research Institute, which has always called 2132 points "diamond bottom", even said that this policy is a major benefit, which will help the current stability of the A-share market, and encourage long-term investment behavior and long-term holding of blue chip stocks. Significant.
Many analysts have pointed out that the differentiated collection of dividend tax is good for blue chips, especially cash cows with high dividends. Investors can obtain greater returns through long-term holdings; it is bearish for poor performance stocks and brokerage stocks that have not paid dividends for many years. Because investors' long-term holding of shares will reduce the frequency of transactions and reduce brokerage commission income.