Question:
1. Our company is a Joint Stock Company, and when individuals within the company transfer shares to others, according to the provisions in Article 16 of Circular No. 92/2015/TT-BTC, we understand that the transferor must pay personal income tax at a rate of 0.1% on the selling price (as stated in the contract), regardless of whether the transfer results in a profit or a loss. We would like to ask the Tax Department if our understanding is correct.
2. Regarding tax declaration, can our company use form 06/TNCN (issued with Circular 92/2015/TT-BTC) to declare and pay taxes on behalf of the transferring individual? Or is it mandatory for the individual to declare taxes directly to the tax authority?
Answer:
Based on Article 16, Clause 6 of Article 21 of Circular No. 92/2015/TT-BTC dated June 15, 2015, issued by the Ministry of Finance, amending and supplementing points a and b of Clause 2 of Article 11 and Clause 5 of Article 16 of Circular No. 111/2013/TT-BTC dated August 15, 2013, issued by the Ministry of Finance, providing guidelines on personal income tax, and regulating the basis for calculating and declaring personal income tax for securities transfers:
1. In the case where an individual transfers shares of a Joint Stock Company that is not a public company to other organizations or individuals, the individual is required to declare personal income tax for each occurrence using form 04/CNV-TNCN, as provided in Circular No. 92/2015/TT-BTC, at a rate of 0.1% on the transfer value of the securities for each occurrence (regardless of profit or loss) at the tax authority managing the business.
2. If the business declares taxes on behalf of the individual, the business should submit a substitute tax declaration for personal income tax. The business should indicate “Declaration on behalf” before the phrase “Taxpayer or Legal Representative of the taxpayer”, and the person signing the declaration should clearly state their name and affix the company seal. The tax calculation documents should still reflect the individual as the taxpayer for the securities transfer.
