Uni 06-08-2013 - Guidance on PIT from securities transfer-capital investment

According to the official letter No. 2269/TCT-TNCN:

• Organizations, individuals who transfer the shares of a public company under Law on Securities are securities transfers, therefore, applied to tax regulations about securities transfers.
• Organizations, individuals who transfer the shares of joint-stock companies are not securities transfers, therefore, applied to tax regulations about capital transfers.
• If a joint-stock company is a public company as regulations of Law on Securities and pays dividends to employees, the paid employees’ proceeds must be subject to PIT under regulations of capital investment. If the joint-stock company does not pay dividends but re-purchases shares from the employees (the purchase cost equals to (=) the par value plus (+) interest), the employees who have income from share transfer will be withheld PIT from securities.
• If individuals of a joint stock company transfer securities without registration of tax payment with 20% tax rate, PIT will be applied to 0.1% tax rate of securities transfer price for each time. Transfer price equals to (=) [the par value plus (+) interest] (x) shares.