Is personal income tax payable when receiving a gift in the form of call options on shares in Vietnam?

Is personal income tax payable when receiving a gift in the form of call options on shares in Vietnam?

According to the provisions in Clause 10, Article 2 of Circular 111/2013/TT-BTC, the specific taxable incomes are regulated as follows:

Taxable Income

According to Article 3 of the Personal Income Tax Law and Article 3 of Decree No. 65/2013/ND-CP, taxable incomes for personal income tax include:

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10. Income from receiving gifts

Income from receiving gifts is the income received by an individual from organizations or individuals both domestic and international. Specifically:

a) For receiving gifts in the form of securities, including: stocks, call options on shares, bonds, treasury bills, fund certificates, and other types of securities as stipulated by the Securities Law; shares of individuals in joint-stock companies as stipulated by the Enterprise Law.

b) For receiving gifts in the form of capital in economic organizations, business establishments, including: capital in limited liability companies, cooperatives, partnerships, business cooperation contracts, capital in private enterprises, individual business establishments, capital in associations, funds established in accordance with the law, or the entire business establishment if it is a private enterprise or individual business establishment.

c) For receiving gifts in the form of real estate, including: land use rights; land use rights with attached assets; house ownership rights, including future-formed houses; infrastructure and other constructions attached to land, including future-formed constructions; land rental rights; water surface rental rights; other income received from inheriting real estate in any form; except for income from real estate gifts guided at point d, clause 1, Article 3 of this Circular.

d) For receiving gifts in the form of other assets that must be registered for ownership or use rights with state management agencies, such as: cars; motorcycles or motorbikes; vessels, including barges, canoes, tugboats, pushers; boats, including yachts; aircraft; hunting guns, sports guns.

Thus, the taxable personal income includes the income received by an individual from organizations or individuals both domestic and international. Specifically:

- For receiving gifts in the form of securities, including: stocks, call options on shares, bonds, treasury bills, fund certificates, and other types of securities as stipulated by the Securities Law; shares of individuals in joint-stock companies as stipulated by the Enterprise Law.

Accordingly, call options on shares as a gift are subject to personal income tax as they fall under the category of securities gifts.

Is personal income tax payable when receiving a gift in the form of call options on shares in Vietnam? (Image from the Internet)

What is the deadline of the personal income tax payment in Vietnam?

The deadline for tax declaration and payment is based on Clause 1, Article 55 of the Tax Administration Law 2019, which stipulates as follows:

Tax Payment Deadline

1. If the taxpayer calculates the tax, the deadline for tax payment is no later than the last day of the tax declaration submission deadline. In cases of additional declaration, the tax payment deadline is the tax declaration submission deadline of the tax period with errors or omissions.

For corporate income tax, provisional payment is on a quarterly basis, and the tax payment deadline is no later than the 30th day of the first month of the following quarter.

For crude oil, the deadline for paying resource tax and corporate income tax for each selling occasion is 35 days from the sale date for domestically sold crude oil or from the date of customs clearance for exported crude oil, as regulated by customs law.

For natural gas, the deadline for paying resource tax and corporate income tax is on a monthly basis.

The monthly/quarterly tax declaration and payment deadlines are specifically regulated in Clause 1, Article 44 of the Tax Administration Law 2019 as follows:

Tax Declaration Submission Deadline

1. The tax declaration submission deadlines for taxes declared on a monthly or quarterly basis are regulated as follows:

a) No later than the 20th day of the month following the month when the tax obligation arises for monthly declarations and payments;

b) No later than the last day of the first month of the quarter following the quarter when the tax obligation arises for quarterly declarations and payments.

Thus, the monthly/quarterly tax declaration and payment deadlines are determined as follows:

- For monthly personal income tax payments: No later than the 20th day of the month following the month when the tax obligation arises.

- For quarterly personal income tax payments: No later than the last day of the first month of the quarter following the quarter when the tax obligation arises.

What is the tax declaration submission deadline for annual personal income tax in Vietnam?

The tax finalization deadline will be based on Clause 2, Article 44 of the Tax Administration Law 2019, which regulates the tax finalization deadline for income received in the year 2025 as follows:

Tax Declaration Submission Deadline

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2. The tax declaration submission deadline for taxes with an annual tax period is regulated as follows:

a) No later than the last day of the third month after the end of the calendar year or fiscal year for the annual tax finalization declaration; no later than the last day of the first month of the calendar year or fiscal year for the annual tax declaration;

b) No later than the last day of the fourth month after the end of the calendar year for the personal income tax finalization declaration for individuals directly finalizing taxes;

The tax finalization deadline for income received in the year 2025 is determined as follows:

- If the individual authorizes tax finalization to the income-paying organization or individual, the personal income tax finalization deadline is no later than March 31, 2025.

- If the individual directly finalizes personal income tax with the tax authority, the tax finalization deadline is no later than April 30, 2025.

*Note: In cases where the tax authority calculates the tax, the tax payment deadline will follow the notification from the tax authority.