Are incomes from capital transfer subject to personal income tax in Vietnam?

Are incomes from capital transfer subject to personal income tax in Vietnam?

Based on Clause 4, Article 3 of Decree 65/2013/ND-CP, the regulations are as follows:

Taxable Incomes

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4. Incomes from capital transfer, including:

a) Incomes from transferring capital shares in economic organizations;

b) Incomes from securities transfer;

c) Incomes from capital transfer in other forms.

Thus, incomes from capital transfer are subject to personal income tax.

Are incomes from capital transfer subject to personal income tax in Vietnam? (Image from the Internet)

When must monthly personal income tax be paid in Vietnam?

As per Article 28 of Decree 65/2013/ND-CP, the organization paying the income will pre-deduct the payable tax amount based on the income received.

Based on Article 55 of The Tax Administration Law 2019, the regulations are as follows:

Tax payment deadlines

1. In cases where taxpayers calculate the tax, the deadline for tax payment is the latest on the last day of the filing period of the tax declaration. In cases of supplementary tax declarations, the tax payment deadline is the filing deadline of the tax period that contained the errors or omissions.

For corporate income tax, provisional tax payments must be made quarterly, with the latest tax payment deadline being the 30th day of the first month of the following quarter.

For crude oil, the tax payment deadline for resource tax and corporate income tax on each export sale of crude oil is 35 days from the date of the sale for domestically sold crude or from the date of customs clearance for exported crude as prescribed by customs law.

For natural gas, the tax payment deadlines for resource tax and corporate income tax are on a monthly basis.

2. In cases where the tax authority calculates the tax, the payment deadline is as indicated on the tax authority's notification.

3. For other revenue sources that belong to the state budget from land, water resource extraction rights, mineral resource extraction fees, registration fees, and business license fees, the payment deadlines are as prescribed by the Government of Vietnam.

4. For exported and imported goods that are subject to tax as prescribed by export and import tax laws, the tax payment deadlines are as per the provisions of the Export Tax Law and Import Tax Law. In cases where tax amounts arise after clearance or release of the goods, the tax payment deadlines are as follows:

a) The deadline for paying taxes on supplementary declarations and assigned tax amounts shall follow the initial customs declaration deadline;

b) The deadline for paying taxes on goods requiring analysis or inspection to determine the exact tax amount; goods without an official price at the time of customs declaration; goods with final payments; and goods with discount adjustments to the customs value is as prescribed by the Minister of Finance.

Additionally, according to Clause 2, Article 44 of The Tax Administration Law 2019, regulations on the deadline for filing personal income tax declarations are as follows:

Deadlines for filing tax returns

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2. The deadlines for filing tax returns for taxes calculated annually are as follows:

a) The latest by the last day of the third month following the end of the calendar or fiscal year for annual tax settlement declarations; the latest by the last day of the first month of the calendar or fiscal year for annual tax returns;

b) The latest by the last day of the fourth month following the end of the calendar year for personal income tax settlement declarations of individuals who personally settle taxes;

c) The latest by December 15 of the preceding year for lump-sum tax returns of business households and individuals paying tax under the lump-sum method; for newly established business households or individuals, the deadline for submitting lump-sum tax returns is 10 days from the start of business operations.

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Thus, the deadlines for filing personal income tax settlements are divided into two timeframes for the following two cases:

- No later than the last day of the third month following the end of the calendar or fiscal year for tax settlement declarations performed by enterprises on behalf of employees.

- No later than the last day of the fourth month following the end of the calendar year for personal tax settlements directly handled by individuals.

What are the locations and methods for submitting personal income tax in Vietnam?

According to Article 56 of The Tax Administration Law 2019, the regulations on locations and methods for tax submission are as follows:

Locations and methods of tax submission

1. Taxpayers shall submit tax payments to the state budget as follows:

a) At the State Treasury;

b) At the tax authority where the tax declaration forms are submitted;

c) Through organizations authorized by tax authorities to collect taxes;

d) Through commercial banks, other credit institutions, and service organizations as prescribed by law.

2. The State Treasury, commercial banks, other credit institutions, and service organizations as prescribed by law are responsible for arranging locations, means, officials, and employees for tax collection to ensure convenience for taxpayers to promptly submit tax payments into the state budget.

3. Agencies and organizations receiving tax payments or deducting taxes must issue taxpayers tax payment receipts.

4. Within 08 working hours from the time of tax payment receipt, agencies and organizations receiving tax payments must transfer the tax payments into the state budget. For cash tax collection in remote areas, islands, or areas with difficult access, the tax transfer timeline into the state budget is as prescribed by the Minister of Finance.

Thus, personal income taxpayers can directly submit tax payments at the State Treasury; the tax authority where the tax declaration forms are submitted, or through organizations authorized by tax authorities to collect taxes.

Additionally, personal income tax payments can be made through commercial banks, other credit institutions, and service organizations as prescribed.