Tax Obligations When the Owner of a One-Member Limited Liability Company Transfers the Entire Charter Capital

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I would like to inquire as follows: My family has a Single-Member Limited Liability Company (LLC), where my father is the Owner, and my wife and the company's Director are the legal representatives. This information is fully stated on the Certificate of Business Registration. Now my father wishes to transfer the ownership to me or my wife as the owner. Please advise on the following:- Procedure for transferring the owner's rights.- Taxes and fees that need to be paid.

Regarding Procedures:

Refer to the article

Can the owner of a single-member limited liability company transfer all charter capital?

Regarding Tax Obligations:

Income from capital transfer is personal income subject to personal income tax according to the provisions of Clause 4, Article 2 of Circular 111/2013/TT-BTC:

To be specific: Income from the transfer of contributed capital in limited liability companies (including single-member limited liability companies), partnerships, business cooperation contracts, cooperatives, people's credit funds, economic organizations, and other organizations.

The personal income tax rate for income from capital transfers is applied according to a flat rate of 20%.

Therefore, in this case, the company owner must pay the above personal income tax. The tax declaration procedure is implemented according to Clause 4, Article 26 of Circular 111/2013/TT-BTC.

Respectfully!

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