OFFICIAL LETTER 639/TCT-TNCN DATED 28 FEB 2017 OF GDT GUIDING PIT FROM CAPITAL INVESTMENT
Official letter 639/TCT-TNCN DATED 28 Feb 2017 guiding PIT from capital investment for the profits after paying CIT of an individual owned one member limited company:
Time of determining taxable income for income from capital investment is the time that income payers pay income to tax payers.
The time of determining taxable income for the following cases:
- For income from the added contribution capital value, the time to determine the income from capital investment is the time that the individuals received income when enterprise dissoluted, converted, separated, split, merged, combined or withdrawal.
- For income from profits to increase capital, the time to determine the income from capital investment is time that individuals transfer, withdraw.
- For income from proceeds paid with stock, the time to determine income from capital investment is the time that individuals transfer stock.
From 01 Jan 2015, profits distributed by individuals of an individual owned one member limited company after paying CIT must not pay PIT.
