Question:
Our company is a joint-stock company that is not listed on the stock exchange; we only issue internal shares. In 2016, the following situation occurred: Mr. A owns 1000 shares with a face value of 10,000 VND per share. Mr. A sold all 1000 shares for a price of 20,000 VND per share. We would like to know how much tax Mr. A has to pay. Should our company collect the tax and handle it, or should Mr. A declare and settle it himself?
Answer:
In accordance with Point 4b of Article 2 and Point 2b of Article 11 of Circular No. 111/2013/TT-BTC dated August 15, 2013, issued by the Ministry of Finance, guiding personal income tax (PIT);
– In accordance with Point 6 of Article 21 of Circular No. 92/2015/TT-BTC dated June 15, 2015, issued by the Ministry of Finance, providing guidance on certain amendments and supplements to PIT regulations in the law amending and supplementing some articles of tax laws No. 71/2014/QH13 and Decree No. 12/2015/ND-CP dated February 12, 2015, of the Government detailing the implementation of laws amending and supplementing some articles of tax laws (applicable to tax periods from 2015 onward), amending and supplementing Point 5 of Article 16 of Circular No. 111/2013/TT-BTC dated August 15, 2013, issued by the Ministry of Finance, which provides guidance on PIT for income from securities transfer.
In the case where a shareholder of the company, who is an individual, conducted a share transfer to another organization or individual in 2016, he should declare and pay PIT on the income from the securities transfer as instructed, with a tax rate of 0.1% on the transfer price.
