What are the prices of securities services rendered by the Vietnam Stock Exchange and the Vietnam Securities Depository and Clearing Corporation?
Are prices of securities services subject to value added tax in Vietnam?
Pursuant to the provisions of Clause 2, Article 3 of Circular No. 101/2021/TT-BTC stipulating that prices of securities services specified in Circular No. 101/2021/TT-BTC are not subject to value-added tax according to provisions of the Law on Value Added Tax and related documents.
Specifically, Clause 8, Article 5 of the 2008 Law on Value Added Tax in Vietnam (amended and supplemented by Clause 1, Article 1 of the 2013 Law on Amendments to Law on Value Added Tax in Vietnam) stipulates who are not subject to value-added tax as follows:
Non-taxable objects
…
8. The financial, banking, and securities services below:
a) Credit services include: loaning, discounting or rediscounting negotiable instruments and other valuable papers; guarantee; finance lease; domestic factoring; international factoring; other credit services according to law;
b) Loaning services provided by taxpayers that are not credit institutions;
c) Securities services include: securities brokerage; proprietary trading of securities; guaranteeing securities issuance; securities investment consultancy; securities depository; management of securities investment fund; management of securities investment portfolio; market organization services of Stock Exchanges or Securities trading centers; other securities services according to the laws on securities;
d) Capital transfers include: transferring part or the whole invested capital, including selling an enterprise to another enterprise; other forms of capital transfers according to law.
dd) Selling debts;
e) Trading in foreign currencies;
g) Derivative financial services include: swapping interest rates; forward contracts, futures contracts, foreign-exchange options; other derivative financial services according to law;
h) Selling collateral for loans taken by organizations of which 100% of charter capital is possessed by the State, which are established by the Government to settle bad debts of Vietnamese credit institutions.
Thus, securities services applied at the Stock Exchange and the Securities Depository and Clearing Corporation are not subject to value-added tax under the provisions of the Law on Value-Added Tax and other legal documents.
What are the prices of securities services rendered by the Vietnam Stock Exchange and the Vietnam Securities Depository and Clearing Corporation?
What are the prices of securities services rendered by the Vietnam Stock Exchange and the Vietnam Securities Depository and Clearing Corporation?
Pursuant to the provisions of Article 3 of Circular No. 101/2021/TT-BTC on prices of securities services rendered by Stock Exchanges (SEs) and Securities Depository and Clearing Corporation (VSDC) as follows:
Prices of securities services rendered by SEs and VSDC
1. The prices of securities services rendered by SEs and VSDC are elaborated in the Price Schedule and the Appendix enclosed herewith.
2. Prices of securities services prescribed herein are not subject to value-added tax in accordance with regulations of the Law on value-added tax and its amendments (if any).
3. SEs and VSDC shall themselves decide the prices of their services which are not specified in the Price Schedule enclosed herewith in conformity with their provision of such services and in accordance with regulations of the Law on pricing, the Law on securities and relevant laws, and shall assume responsibility for their decision.
4. SEs and VSDC must post and publish their prices of services and comply with regulations of the Law on pricing, the Law on securities and relevant guiding documents.
5. Trading service price payable by market makers may be reduced by up to 80% of the corresponding price specified in Point 4 Section II Part A of the Price Schedule and up to 70% of the corresponding price specified in Point 3 Section II Part B of the Price Schedule after they have fulfilled their market-making obligations in accordance with regulations of law and specific requirements imposed by competent authorities.
6. Listing service price in Point 2 Section II Part A of the Price Schedule, price of securities listing management in Point 3 Section II Part A of the Price Schedule, trading service price in Point 4 Section II Part A of the Price Schedule, price of securities registration/partial securities deregistration in Point 12 Section III Part A of the Price Schedule and securities depository service price in Point 13 Section III Part A of the Price Schedule enclosed herewith charged to issuers and buyers of green bonds as prescribed in the Law on Environmental Protection and its guiding documents shall be reduced by 50%.
Thus, the prices of securities services are specified in the Price Schedule attached to Circular No. 101/2021/TT-BTC.
Is there a fee to transfer securities ownership?
Pursuant to the provisions in Section A of the Schedule of prices of securities services promulgated together with Circular No. 101/2021/TT-BTC on the service price of transfer of securities ownership as follows:
- Transfer of shares by founding shareholders during transfer restriction period as prescribed by law: 0,1% of the value of transferred securities
- Transfer of ownership of securities centrally registered at VSDC upon approval by State Securities Commission (SSC):
+ 0,1% of the value of transferred shares, fund certificates or covered warrants
+ 0,005% of the value of transferred corporate bonds or debt instruments defined in the Law on Public Debt Management
- Transfer of ownership of privately placed corporate bonds which have been registered at VSDC but have not yet been traded on SE: 0,005% of the value of transferred bonds
- Transfer of securities ownership due to full or partial division, consolidation or merger of enterprises; contribution of share capital to enterprises (including cases of full or partial division, consolidation or merger of enterprises approved by SSC, and contribution of share capital by organizations established abroad); establishment or increase in charter capital of private securities investment companies; increase or decrease in charter capital of private funds: 0,02% of the value of transferred securities
- Transfer of securities ownership due to disposition of collateral which is securities registered and blockaded at VSDC:
+ 0,02% of the value of transferred shares, fund certificates or covered warrants
+ 0,005% of the value of transferred corporate bonds or debt instruments defined in the Law on Public Debt Management
- Donation or inheritance of securities according to the Civil Code, except donation or inheritance of securities between husband and wife, a parent and his/her natural child, an adoptive parent and his/her adopted child, a father or mother and his/her daughter or son in law, a paternal or maternal grandparent and his/her grandchild, or between siblings:
+ 0,1% of the value of transferred shares, fund certificates or covered warrants
+ 0,005% of the value of transferred corporate bonds or debt instruments defined in the Law on Public Debt Management
- Transfer of securities ownership in case of tender offers: 0,03% of the value of transferred securities
- Transfer of securities ownership in cases of exchange of ETFs or exercise of covered warrants: 0,05% of the value of component securities to be exchanged, which is calculated according to the face value of ETFs, or the value of transferred underlying securities, calculated according to their face value, due to exercise of covered warrants
- Transfer of share ownership between foreign investors in the event that the maximum foreign holding of that share has been reached and the price agreed upon between the parties is higher than the ceiling price of that share on the securities trading system at the time of trading: 0,1% of the value of transferred shares
- Transfer of securities ownership serving issuance or cancellation of depositary receipts in transactions between investors and overseas issuers of depositary receipts: 0,05% of the value of transferred underlying securities calculated by face value.
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