Securities transferee shall pay 0.1% tax on the price of each transfer in Vietnam.
Article table of contents
According to the provisions of the Law on Personal Income and relevant guiding regulations, the income from transfer of securities (or sales of securities) is subject to personal income tax. That is, individuals earning income from transfer of securities must pay personal income tax according to regulations.
What do incomes from transfer of securities in Vietnam includes?
Income from transfer of securities subject to personal income tax includes:
- Incomes from the transfer of stocks, right to buy stocks, bonds, bills, fund certificates, and other types of securities in accordance with the Law on Securities.
- Income from the transfer of shares of individuals in a joint-stock company in accordance with the Law on Securities and the Law on Enterprises.
Basis for calculating personal income tax from stock investment in Vietnam (Internet image)
Basis for calculating personal income tax in 2023 from stock investment in Vietnam
According to the provisions of Clause 2, Article 11 of Circular 111/2013/TT-BTC, the basis for calculating tax on incomes from transferring securities is assessable income and the tax rate.
In which, according to the provisions of Article 16 of Circular 92/2015/TT-BTC:
- The assessable income from transferring securities is the price of each transfer. Securities transfer price is determined as follows:
- The transfer price of securities of a public company traded at the Stock Exchange is the transaction price at the Stock Exchange. The executed price is based on the order matching result of prices from transactions at the Stock Exchange.
- The transfer price of securities in cases other than the above is the price written on the transfer contract or actual transfer price or the price in the accounting book transferor when the latest financial statement is made before the time of transfer according to regulations of law on accounting.
- Securities transferee shall pay 0.1% tax on the price of each transfer.
The PIT payable is calculated according to the following formula:
PIT payable = Price of each transfer x 0.1% tax
Thus, it can be seen that when an individual participates in a securities investment and sells securities, he/she is required to pay personal income tax on the sale amount regardless of profit or loss.
Basis for determining the time to calculate the assessable income in Vietnam
According to the provisions of Point c, Clause 2, Article 11 of Circular 111/2013/TT-BTC, the time to calculate assessable income from transferring securities: is determined as follows:
- For securities of a public company that are traded at the Stock Exchange, it is the time the taxpayer receives the income from securities transfer.
- For securities of a public company that are not traded at the Stock Exchange but only transferred via the system of the Vietnam Securities Depository, it is the time the ownership is transferred at the Vietnam Securities Depository.
- For the securities that do not fall into the cases above, it is the time the securities transfer contract takes effect.
- When making capital contribution by securities without paying tax when making capital contribution, the time to calculate income from transferring securities to make capital contribution is the time the person transfers, withdraws capital.
Mai Thanh Loi
