Individuals deriving income from transfer of captial or securities are responsible for declaring PIT from capital transfer. Individuals directly declare PIT from capital transfers to tax authorities each time it arises.
(*) PIT: Personal Income Tax
1. What is PIT from capital transfer?
Pursuant to Clause 4, Article 3 of the 2007 Law on Personal Income Tax, personal incomes from capital transfer is determined, including:
– Incomes from transfer of capital holdings in economic organizations;
– Incomes from transfer of securities;
– Incomes from transfer of capital in other forms.
2. Dossier to declare PIT from transfer of capital:
– Declaration of PIT from capital transfer form No. 04/CNV-TNCN (issued with Appendix II Circular 80/2021/TT-BTC) (applicable to individuals with incomes from transfer of capital or securities declaring directly to tax authorities and organizations; individuals declaring on behalf of individuals).
– Copy of Capital Transfer Contract.
– Copy of documents determining the value of contributed capital according to accounting books. In case of contributed capital is repurchased, there must be a transfer contract upon the purchase.
– Copies of documents proving costs related to determining income from capital transfer activities specified in Appendix I Decree 126/2020/ND-CP).
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3. Agency for application submission
Individuals with income from capital transfer or capital investment are subject to direct tax declaration to the tax authority and submit tax declaration documents to the tax authority managing the issuing unit.
4. Term of application
Individuals with income must submit dossier to declare PIT from capital transfer no later than the 10th day from the date of tax liability.
Legal basis:
- Law on Tax Administration No. 38/2019/QH14 issued on June 13, 2019 (“Law on Tax Administration 2019”);
- Law on Personal Income Tax No. 04/2007/QH12 issued on November 21, 2007 (“Personal Income Tax Law 2007”), amended by Law on Amendment of Tax Laws No. 71/2014/QH13 and Amended Personal Income Tax Law No. 26/2012/QH13);
- Decree 126/2020/ND-CP on guidelines for the Law on Tax Administration issued on October 19, 2020;
- Circular 80/2021/TT-BTC guiding the Law on Tax Administration and Decree 126/2020/ND-CP guiding the Law on Tax Administration issued on September 29, 2021.
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