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VIETNAM TAX POLICY ON INCOMES FROM CAPITAL INVESTMENT

* ON CORPORATE INCOME TAX:

Under the provisions of Clause 6, Article 8 of Circular 78/2014/TT-BTC. Provisions on Corporate Income Tax-exempt incomes:

“3. Tax-exempt incomes.

Incomes divided from capital contribution, share purchase, joint venture or economic association with domestic enterprises, after contributed capital recipients, share issuers or joint venture or association parties have paid Corporate Income Tax under the Law on Corporate Income Tax, including those eligible for enterprise income tax incentives.

* ON PERSONAL INCOME TAX:

Pursuant to Clause 6, Article 11, Chapter III of Circular 92/2015/TT-BTC amending and supplementing Point c, Clause 3, Article 2 of Circular 111/2013/TT-BTC stipulates taxable incomes as follows:

“3. Incomes from capital investment

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

c) Profits from capital contributions to limited liability companies, partnerships, cooperatives, joint-ventures, business cooperation contracts, and other forms of business under the Law on Enterprises and the Law on Cooperatives; profits from capital contribution in establishment of credit institutions according to the Law on credit institutions; capital contributions to securities investment fund and other investment funds that are established and operated within the law.

Profits from capital investment of private companies and single-member limited liability companies under the ownership of individuals shall not be included in taxable income.”

Pursuant to Circular 111/2013/TT-BTC in Article 10. Basis for calculating tax on incomes from capital investment:

“The basis for calculating tax on incomes from capital investment is the assessable income and tax rates.

2. According to the whole income tax table, the tax rate on the income from capital investment is 5%.”