Personal income tax in case of capital transfer under laws


  • Law on Personal Income Tax and the amended laws;
  • Law on Enterprise;
  • Circular No. 111/2013/TT-BTC;
  • Circular No. 156/2013/TT-BTC.
  • Circular No. 92/2015/TT-BTC;


Incomes from capital transfer are personal incomes received from transferring capital contributions or securities, specifically as following:

Incomes from transferring capital contributions in limited liability companies (including single-member limited liability companies), partnerships, business cooperation contracts, cooperatives, people’s credit funds, economic organizations, and other organizations

Incomes from transferring securities, including incomes from transferring the stocks, the right to purchase the stocks, bonds, treasury bills, fund certificates, other securities in accordance with Clause 2, Article 6 of Law on Securities and Article 120 of Law on Enterprises.


1. Incomes from transferring capital contributions

a) Taxable income

Taxable income = Transfer price – Purchase price –necessary expenses for the transfer

Currency for transfer

If the enterprise records accounting in foreign currencies, the transfer price and the purchase price are determined in foreign currencies.

If the enterprise records accounting in Vietnam Dong: The transfer price must be determined in Vietnam dong according to the average exchange rate on the interbank foreign currency market announced by the State Bank of Vietnam at the time of transfer.

Transfer price is the amount of money recorded under a capital transfer contract (“The Contract“). In case the Contract does not stipulate or stipulate a certain transfer price but the transfer price is not suitable for the market price, tax authorities are entitled to set the transfer price under Law on Tax Administration.

The purchase price is the value of capital contributions at the time of transfer, including the value of capital contribution when: establishing a business, recording an increase in capital from profits or additional capital contributions.

b) Tax rate: 20%

c) Payable PIT:

PIT=The taxable income×Tax rate of 20%

d) Time for determining the taxable income When The Contract takes effect or transferring capital contributions or withdrawal capital contributions

e) Deadline for submitting tax declaration documents: No later than the 10th day (ten) from the effective date of The Contract

f) Deadline for paying tax is the deadline stated in the tax notice of the tax authority

2. Incomes from transferring securities

a) Taxable income

Taxable income = Transfer price

Please note that transfer price is the amount of money recorded under a securities transfer contract or the actual transfer price or the price according to the bookkeeping of the enterprise having transferable securities (at the time of making the latest financial statements in accordance with the Law on Accounting and before the time of transfer.

b) Tax rate: 0,1%.

c) The  payable PIT

PIT=The taxable incomexTax rate 0,1%

d) Time for determining taxable income: When the securities transfer contract takes effect.

e) Deadline for submitting tax declaration documents

If the individual who has income directly declare tax (“individual”): within 10 days from the day the securities transfer contract takes effect according to the law

If the enterprise pays tax on behalf of an individual: tax declaration documents must be submitted before the list of shareholders is changed according to the law

f) Deadline for paying tax: the last day of the period of submitting tax declaration documents.

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