Which incomes from capital transfer are subject to PIT in Vietnam? When is the latest deadline for submitting the 04/cnv-tncn declaration form in Vietnam?

When is the latest deadline for submitting the 04/cnv-tncn declaration form in Vietnam?

According to Article 44 of the 2019 Tax Administration Law regarding the deadlines for submission of tax declaration dossiers are as follows:

Deadlines for submission of tax declaration dossiers

....

2. For taxes declared annually:

a) For annual tax statement dossiers: the last day of the 3rd month from the end of the calendar year or fiscal year. For annual tax declaration dossiers: the last day of the first month from the end of the calendar year or fiscal year

b) For annual personal income tax statements prepared by income earners: the last day of the 4th month from the end of the calendar year;

c) For presumptive tax declarations prepared by household businesses and individual businesses: the 15th of December of the preceding year. For new household businesses and individual businesses: within 10 days from the date of commencement of the business.

3. For declaration of taxes that are declared and paid upon incurrence: the 10th day from the day on which tax is incurred.

....

On the other hand, based on Article 7 of the 2007 Personal Income Tax Law amended by Clause 3 of Article 1 of the 2012 Amendment Law on Personal Income Tax, the tax period is as follows:

Tax period

1. For residents, tax period is specified as follows:

a/ Annual tax period, which is applicable to incomes from business, salaries and wages.

b/ Tax period upon each time of income generation, which is applicable to incomes from capital investment; incomes from capital transfer, except for incomes from securities transfer; incomes from real estate transfer; incomes from prizes; incomes from copyright; incomes from commercial franchising; incomes from inheritances; and gifts.

c) Tax period upon each transfer or annual tax period, which is applicable to Incomes from transfer of securities.

2. For non-residents, the tax period counted upon each time of income generation is applicable to all their taxable incomes.

Therefore, the deadline for submitting the 04/cnv-tncn declaration (declaration of personal income tax on capital transfer) is determined as follows:

[1] For residents:

The latest is the 10th day from the completion date of the capital transfer transaction as prescribed by law, except for securities transfer (submitted for each occurrence of tax liability)

For securities transfer: the latest is the 10th day from the completion date of the capital transfer transaction as prescribed by law (submitted for each occurrence of tax liability) or submitted annually, the latest is the last day of the first month of the calendar year or fiscal year.

[2] For non-residents:

Implemented for each occurrence of tax liability, the latest is the 10th day from the effective date of the transfer contract.

Which incomes from capital transfer are subject to PIT in Vietnam? When is the latest deadline for submitting the 04/cnv-tncn declaration form in Vietnam? (Image from the Internet)

Which incomes from capital transfer are subject to PIT in Vietnam?

According to Clause 4 of Article 2 of Circular 111/2013/TT-BTC amended by Article 4 of Circular 25/2018/TT-BTC, capital transfer income subject to personal income tax includes:

Incomes from capital transfer are personal income in the form of:

- Profits from capital contributions to limited liability companies (including single-member limited liability companies), partnerships, cooperatives, business cooperation contracts, people's credit funds, economic organizations, and other organizations.

- Income from securities transfer includes:

+ Income from transfer of stocks, the right to buy stocks, bonds, treasury bills, fund certificates and other securities according to the Law on Securities.

+ Income from transfer of stocks by individuals in a joint-stock company is specified in the Law on Securities and the Law on Enterprises. 

- Incomes from other forms of capital transfer.

How is the personal income tax from capital transfer calculated in Vietnam?

According to Article 13 of the 2007 Personal Income Tax Law amended by Clause 5 of Article 2 of the Law Amending and Supplementing a Number of Articles of Tax Laws 2014, the personal income tax from capital transfer is determined by the following formula:

1. Taxable income from capital transfer equals (=) selling price minus (-) buying price and other reasonable costs related to the generation of income from capital transfer.

Taxable income from securities transfer is the price of each transfer.

2. Taxable income from capital transfer shall be determined when the transfer is completed as prescribed by law.

The government shall elaborate this Article.

Best Regards!