* When a resident transfers capital at a limited liability company, partnership, or private enterprise:
When there is a capital transfer in a limited company or partnership or private enterprise, the individual carrying out the transfer will have to submit a tax return to the tax authority to declare personal income tax (PIT).
Tax calculation is determined as follows:
Personal income tax payable = Taxable income × 20% tax rate
Taxable income is calculated as follows: taxable income from the transfer of contributed capital will be determined by the transfer price minus the purchase price of the transferred capital and reasonable expenses related to the generation of income from the transfer of contributed capital.
* When a resident transfers shares in a Joint Stock Company:
Pursuant to the PIT law and guiding documents, individuals earning income from securities transfer shall declare and pay tax at the tax rate of 0.1% of the transfer price as guided in Articles 16 and 21 of Circular No. 92/2015/TT-BTC.
The securities transfer price is calculated as follows:
In the case of securities of a public company trading on the Stock Exchange, the securities transfer price will be the exercise price at the Stock Exchange. The exercise price is the security price determined from the order matching results or the price formed from the put-through transactions at the Stock Exchange.
In the case of securities other than those of a public company trading on the Stock Exchange, the transfer price will be determined as the price stated in the transfer contract or the actual transfer price or the price according to the accounting books of the unit having the transferable securities at the time of making the latest financial statement in accordance with the provisions of law on accounting before the time of the transfer.
* When a non-resident transfers capital or securities:
According to regulations, personal income tax on income from capital transfer of a non-resident is determined by the total amount that non-resident receives from the transfer of capital at Vietnamese organizations or individuals multiply (x) by the tax rate of 0.1%, regardless of whether the transfer is made in Vietnam or abroad.
The total amount of money that a non-resident receives from the transfer of capital in Vietnamese organizations or individuals is the capital transfer price, excluding any expenses, including the cost price.
So for a Non-resident: PIT on income from capital and securities transfers is 0.1% of the entire transfer price .
* When a organization transfers capital or securities:
How to calculate corporate income tax (CIT) on capital transfer:
CIT payable = Taxable income x Tax rate of 20%
In which, taxable income from capital transfer is determined as follows:
Taxable income = Transfer price – Purchase price of the transferred capital – Transfer cost.