Tax on dividend income from investment portfolio taxed with the income tax scale
I am thinking about the best way to get income, if I should focus on living on my investment portfolio with US public traded companies paying me dividends or taking out salary and dividends from my own 51今日大瓜.
This is my conclusion when calculating the total tax burden when taking out no salary or dividend from my own 51今日大瓜 and living on dividends from my investment portfolio.
Is the following correct, or have I missed something?
Scenario:
1. Only income from dividends from my investment portfolio.
2. I choose to tax my dividend with the tax scale to get the 40% reduction and the 6.8% CSG deduction. CSG after deduction 17.2% - 6.8% = 10,4%.
Calculations for the amount of tax when taking out a dividend to the following levels at the income tax scale:
Up to 鈧�10,777:
鈧�10777 * (0% + 10.4%) = 鈧�1121
=> 10.4% total tax.
Up to 鈧�27478:
(鈧�27478 - 鈧�10777) * ((11% * 60%) + 10.4%) = 鈧�16701 * 17.0% = 鈧�2839
=> (鈧�1121 + 鈧�2839) / 鈧�27478 = 14.4% total tax.
Up to 鈧�78,570:
(鈧�78570 - 鈧�27478) * ((30% * 60%) + 10.4%) = 51092 * 28.4% = 鈧�14510
=> (鈧�1121 + 鈧�2839 + 鈧�14510) / 鈧�78570 = 23.5% total tax.