The opinion of the business law firms

Knowing from the business law firms, according to the international through practice, laws are encouraging the permanent investment and hold up the short-term investments, which is reflected in the tax law zones of the following situation, higher taxes toward the share transfer and tax free policy toward the divined and bonus. It is a good and perfect way to maintain the steady investment which is adoptable in every country.

The Notice toward the implement of individual income tax which was published several days ago has arisen the attention of the entire society. Many people judged about this notice and someone said that it can restrain the short-term hype period and encourage the permanent investment; while someone thought that this policy is contract to the Company Law and it is a crimination policy; even there are some people look further and research this problem in the eyes of the differences between agent investors and personal investors, who hold an idea that this policy make the depressed stock market more difficult and tough.
However, in the opinion of the business law firms, according to the differences of the investors, the investment of the listed company can be divided into the institutional investors and personal investors, because the tax policy toward the dividend bonus is different, the tax rate of the personal tax toward the dividend is 20%, while in 2005, the government lower down the tax of the personal investors from the listed companies. Until now, the Notice that pushed out by the government is to restrain the short-term activity and encourage the permanent investment. If you are confused about the taxes of it, you need to contact with the business law firms to figure it out.Therefore, based on the investment period, if the personal invested listed company is in one month, the actual tax of the dividend and bonus is 20%; if it is in one year, the actual tax is 10%; and if it is up to one year, the real tax is 5%.