Tax from transfer of shares of enterprise in Vienam, who will be responsible for the tax declaration?

Guidance of Tax Agency on income tax from transfer of securities of enterprise in Vietnam as per Dispatch No.7041/CT-TTHT dated 18 Sept 2013 of Ho Chi Minh City Tax Agency and Dispatch No. 1188/TCT-CS dated 11 April 2013 of General Tax Agency of Vietnam

Post date: 28-10-2013

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Pursuant to Dispatch No.7041/CT-TTHT, the case of shareholders of Joint Stock Company transfer of shares held to other organizations or individuals, the tax declaration shall comply with the provisions for transfer of securities.

                    Tax from transfer of shares of enterprise in Vienam, who will be responsible for the tax declaration?

  Tax from transfer of shares of enterprise in Vienam, who will be responsible for the tax declaration?

Tax from transfer of shares of enterprise in Vietnam, responsibilities for tax declaration shall be determined case by case basis as follows:

1 . If the shares of a public company are listed on the stock exchange, the securities company or commercial bank or fund management company shall deduct and pay personal income tax of 0.1 % on price

2. If the shares of unlisted companies which authorize a securities company to manage the shareholder list, the securities company shall be responsible for withholding and paying the personal income tax of 0.1% on price

3. If not the two cases above, the individuals who transfer of shares shall declare and pay personal income tax. Declaration time is the time of the transfer of shares.

( Notes: See instructions in paragraph 5 of Article 26 of Circular No. 111/2013/TT-BTC).

In all 3 cases above, the Enterprise will not be liable for personal income tax to its shareholders to transfer their shares.

However, according to Dispatch No. 1188/TCT-CS dated 11 April 2013, if the shareholders are foreign organizations not operating under the Enterprise Law, Investment Law in Vietnam, the equity (shares) transferee shall declare and pay income tax.

Where the transferor and the equity (shares) transferee are foreign organizations which are not operating under the Enterprise Law, Investment Law in Vietnam, the enterprise which has transfer of capital transaction will be shall declare and pay income tax.

Reference: Dispatch No. 1188/TCT-CS dated 11 April 2013 and point c, Clause 2, Article 14 of Circular 123/2012/TT-BTC.
 

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