What is the application for transferring ownership of securities due to inheritance? How to calculate tax payable from inheritance being securities in Vietnam?
- Are value of securities traded at the UPCOM trading system determined as a base for calculation of tax on incomes from inheritance in Vietnam?
- How to calculate tax payable from inheritance being securities in Vietnam?
- What is the application for transferring ownership of securities due to inheritance in Vietnam?
Are value of securities traded at the UPCOM trading system determined as a base for calculation of tax on incomes from inheritance in Vietnam?
Pursuant to Point a, Clause 1, Article 16 of Circular 111/2013/TT-BTC (amended by Clause 1, Article 19, Circular 92/2015/TT-BTC), it is stipulated as follows:
Bases for calculation of tax on incomes from inheritance and gifts
Bases for calculating tax on incomes from inheritance and gifts are the assessable income and tax rate.
1. Assessable income
The assessable income from inheritance and gifts is the excess over 10 million VND of the inheritance or gifts received. The value of inheritance and gifts is determined as follows:
a) The value of inheritance and gifts being securities is the value of securities at the time of registration of ownership transfer. Assessable income from an inheritance or gift being securities is the value of the inheritance or gift in excess of VND 10 million regardless of ticker symbols without any deductions at the time of registration of securities ownership transfer. To be specific:
a.1) The value of securities traded at the Stock Exchange is based on the reference price at the Stock Exchange at the time of registration of securities ownership.
a.2) The value of securities in cases other than the above is based on the book value provided by the corresponding issuer at the time of making the latest financial statement before the time of registration of securities ownership.
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On the other hand, according to the provisions of Clause 35, Article 3, Decree 155/2020/ND-CP, “UPCOM” stands for “Unlisted Public Company Market”, which is a system organized and operated by stock exchanges for trading of unlisted securities..
At the same time, the General Department of Taxation recently issued Official Dispatch No. 5001/TCT-DNNCN in 2023 on determining the basis for calculating personal income tax from inheritance for securities, stocks on Upcom are stocks traded on the Stock Exchange.
Therefore, the value of inherited assets, which are stocks traded on the Upcom trading system, is determined according to regulations as the value of inherited assets or gifts exceeding 10 million VND per receipt.
What is the application for transferring ownership of securities due to inheritance? How to calculate tax payable from inheritance being securities in Vietnam?
How to calculate tax payable from inheritance being securities in Vietnam?
Pursuant to Article 16 of Circular 111/2013/TT-BTC (amended by Clause 1, Article 19 of Circular 92/2015/TT-BTC) and Article 23 of Circular 111/2013/TT-BTC stipulates as follows:
(1) To calculate the Tax payable from inheritance being securities for resident individuals:
Tax payable from inheritance being securities = Taxable income x Tax rate 10%
The assessable income from inheritance is the excess over 10 million VND of the inheritance received.
Thus, the value of inherited assets is determined for each case, specifically as follows:
The value of inheritance and gifts being securities is the value of securities at the time of registration of ownership transfer. Assessable income from an inheritance or gift being securities is the value of the inheritance or gift in excess of VND 10 million regardless of ticker symbols without any deductions at the time of registration of securities ownership transfer. To be specific:
- The value of securities traded at the Stock Exchange is based on the reference price at the Stock Exchange at the time of registration of securities ownership.
- The value of securities in cases other than the above is based on the book value provided by the corresponding issuer at the time of making the latest financial statement before the time of registration of securities ownership
(2) To calculate Tax payable from inheritance being securities for non-resident individuals:
Tax payable from inheritance being securities for non-resident individuals is calculated according to the following formula:
Tax payable from inheritance being securities = Taxable income x Tax rate 10%
- Taxable income from inheritance of a non-resident individual is the value of the inheritance exceeding 10 million VND each time the income is received in Vietnam.
Income from inheritance of a non-resident individual is determined as for a resident individual.
- The time to determine taxable income is the time the individual carries out procedures to register ownership or use rights of assets in Vietnam.
What is the application for transferring ownership of securities due to inheritance in Vietnam?
Pursuant to Article 28 of the Regulations issued together with Decision 108/QD-VSD in 2021, application for transferring ownership of securities due to inheritance include:
- Written request to transfer ownership of securities of the inheritor or representative of the inheritor, accompanied by a copy of documents showing the identity information of the inheritor and a valid copy of the death certificate of the inheritor. leave an inheritance.
- Copies of documents proving that personal income tax has been paid from inheritance (in case the inheritor is an individual) according to the law on personal income tax (Declaration/Notification of income tax payment). Individuals with certification from the tax authority and written confirmation of payment to the state budget).
- In case of inheritance according to will:
+ A valid copy of the legal Will according to the provisions of law, Document declaring or refusing to receive the inheritance of the heirs regardless of the content of the will;
+ A valid copy of the inheritance division document in case the will does not clearly state the number of securities.
- In case of inheritance by law:
+ The heir's report on the personal relationships of the person leaving the inheritance, which lists complete information about the heir's inheritance (wife, husband, biological parents, adoptive parents, biological children, adopted children...) and commits to the accuracy of the information declared in the report, and takes full responsibility before the law if any dispute arises;
+ A valid copy of the written agreement on division of inheritance (in case there are many people eligible to inherit)/written declaration of inheritance (in case there is only one person eligible to inherit) inheritance) certified by a notary public or competent state agency;
+ A valid copy of the document refusing to receive the inheritance (in case the heir refuses to receive the inheritance)/authorization document in the name of ownership and management of the inheritance (in the case of the heirs). (a person who is an authorized heir to another person) must have confirmation from a notary public or competent state agency;
+ Request for securities transfer according to Form 21/LK Regulations on securities depository activities issued by the General Director of VSD (03 copies for cases other than depository participants, 02 copies for cases with the same depository participant) and Document of The depository member where the party leaving the inheritance opens an account sends VSD confirmation of the balance of deposited securities and a commitment to blockade during the process of ownership transfer procedures.
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