Research On Tax Effect Of The Dividend Policy Choice

As one of the company’s three major financial decisions, dividend policy has an important status. According to the theory of signal transmission, the company’s dividend policy can pass out of the company’s internal information, and good dividend policy can deliver the company’s future has good prospects for development, strengthen the confidence of investors, establish a good image for the company. In recent years, the dividend distribution of the listed companies is not standard, so the dividend policy is becoming more and more important, which require the company’s managers to formulate a self-consistent dividend policy. Appropriate dividend policy needs to start with the factors that affect it, including the company, legal, tax, shareholders and other aspects, but the concrete effect varies on different companies. Because each company would inevitably be influenced by tax, so this article approaches to analysis the tax on dividend policy implications, to prove the tax effect of dividend policy. Study on the effect of tax on dividend policy is very important, it has the significant theoretical significance and application value.This article used the combining research methods of the theoretical analysis and empirical test, according to the tax difference theory and customer effect theory, it starts empirical research of the effect of taxation of the dividend policy. This article respectively conducted empirical analysis from the corporate income tax effect and personal income tax effect, and pointed out the existing problems of dividend income tax in China’s a-share market, namely the stock dividend taxation limited dividend payment options, different subjects bear different tax burden, tax policy was not conducive to encourage investment and dividend double taxation was collected. Finally, according to United States, Japan and Hong Kong’s main stock market dividend income tax system, in view of our country income tax system existing the problems, proposed the related policy suggestion.