What is the of personal income tax rate for income from inheritance being securities in Vietnam?

Which income from inheritance is taxable in Vietnam?

According to the provisions of Clause 9, Article 2 of Circular 111/2013/TT-BTC, income from inheritance is the income received by individuals through a will or pursuant to the law on inheritance. To be specific:

- For securities received from inheritance, including:

+ Shares, rights to buy shares, bonds, treasury bills, fund certificates, and other types of securities according to the Securities Law;

+ An individual's shares in a joint-stock company as prescribed by the Enterprise Law.

- For capital received from inheritance in economic organizations or business establishments, including: contributed capital in a limited liability company, cooperative, partnership, business cooperation contract; capital in a private enterprise, individual business establishment; capital in associations, funds allowed to be established in accordance with the law, or the entire business establishment if it is a private enterprise, individual business establishment.

- For real estate received from inheritance, including:

+ Land use rights;

+ Land use rights with assets attached to the land;

+ Ownership rights to houses, including houses to be formed in the future;

+ Infrastructure and construction works attached to the land, including construction works to be formed in the future;

+ Land lease rights;

+ Water surface lease rights;

+ Other income received from real estate inheritance in any form, except income from real estate inheritance.

- For other assets received from inheritance that must be registered for ownership or use with the state management agency, such as: automobiles; motorbikes, motorcycles; watercraft, including barges, canoes, tugboats, push boats; boats, including yachts; aircraft; hunting guns, sports guns.

What is the of personal income tax rate for income from inheritance being securities in Vietnam? (Image from the Internet)

What is the of personal income tax rate for income from inheritance being securities in Vietnam?

According to Article 23 of Circular 111/2013/TT-BTC, the regulations are as follows:

For income from prizes, inheritance, gifts

1. Personal income tax for income from prizes, inheritance, gifts of non-resident individuals is determined by the taxable income as guided in Clause 2, this Article multiplied (×) by the tax rate of 10%.

2. Taxable income

a) Taxable income from prizes of non-resident individuals is the value of the prize exceeding VND 10 million for each time winning a prize in Vietnam.

Income from prizes of non-resident individuals is determined similarly to resident individuals as guided in Clause 1, Article 15 of this Circular.

b) Taxable income from inheritance, gifts of non-resident individuals is the value of the inherited assets, gifts exceeding VND 10 million each time income arises in Vietnam.

Income from inheritance, gifts of non-resident individuals is determined similarly to resident individuals as guided in Clause 1, Article 16 of this Circular.

3. Time to determine taxable income

a) For income from prizes: the time to determine taxable income is the time when the organization or individual in Vietnam pays the prize money to the non-resident individual.

b) For income from inheritance: the time to determine taxable income is the time when the individual completes the procedures for registering ownership or use rights of assets in Vietnam.

c) For income from gifts: the time to determine taxable income is the time when the individual completes the procedures for registering ownership or use rights of assets in Vietnam.

Therefore, the current personal income tax rate for inheritance being securities is 10%.

What is the basis for calculating personal income tax from inheritance being securities in Vietnam?

According to Article 16 of Circular 111/2013/TT-BTC (amended by Clause 1, Article 19 of Circular 92/2015/TT-BTC), the basis for calculating personal income tax from inheritance being securities is as follows:

Taxable Income and Tax Rate of 10%

Wherein, taxable income from inheritance is the value of the inherited property exceeding VND 10 million each time received. The value of the inherited property is determined for each specific case. To be specific:

For inherited securities: the value of the inherited property is the value of the inherited property exceeding VND 10 million calculated on all received stock codes without deducting any expenses at the time of registration for transfer of ownership. To be specific:

(1) For securities traded on the Stock Exchange: the value of the securities is based on the reference price on the Stock Exchange at the time of registration for the right to ownership of securities.

(2) For securities not covered by the above case: the value of the securities is based on the book value of the issuing company's financial statements closest to the time of registration for the right to ownership of securities as prescribed by law on accounting.