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Vietnam’s capital gains on disposal of shares/capital: Quick guide (2024).

Vietnam’s capital gains on disposal of shares/capital: quick guide (2024)

Our quick guide covers capital gains on the disposal of shares/capital in Vietnamese companies. It covers the different tax rates depending on the seller and their tax residency and also looks at the party responsible for reporting and remitting taxes arising.

The guide assesses provisions for tax and non-tax residents in Vietnam and covers tax liabilities for gains on disposal of capital and securities in a Vietnamese entity:

  • Corporate entity disposing
  • Individual disposing

Seller: Tax resident (e.g., Vietnamese entities and individuals)

Corporate entity disposing

Gains on the disposal of capital/securities in a Vietnamese entity (including a Limited Liability Company or Joint Stock Company) are subject to Corporate Income Tax at the standard rate of 20% on the gain and treated as other income.

Individual disposing

  • Disposal of Securities (Joint Stock Company).
  • Personal Income Tax is levied at the rate of 0.1% of the proceeds.
  • Disposal of Capital (Limited Liability Company) Personal Income Tax is levied on gains from transfers of capital at a rate of 20% on the gain.

Seller: Non-tax resident (e.g., foreign entities and individuals

Corporate entity disposing

  • Disposal of Securities (Joint Stock Company).
  • Corporate Income Tax is levied at the rate of 0.1% of the proceeds.
  • Disposal of Capital (Limited Liability Company).
  • Corporate Income Tax is levied on gains from transfers of capital at a rate of 20% on the gain.

Individual disposing

Gains on the disposal of capital/securities in a Vietnamese entity (including a Limited Liability Company or Joint Stock Company) are subject to Personal Income Tax at the rate of 0.1% of the proceeds.

Tax declarations and payments

Responsibility for declaring and remitting taxes on gains from disposal of capital/ securities in Vietnamese companies rests with:

SellerBuyerObligation for declaring and remitting taxTime of tax declaration
Vietnamese entityAnySellerYear-end CIT finalisation
Offshore entityVietnamese entityBuyerWhen each transaction occurs
Offshore entityOffshore entityVietnamese target companyWhen each transaction occurs
Non-tax resident individualVietnamese entity/tax resident individualBuyerMonthly/quarterly basis
Tax resident individualAnySellerWhen each transaction occurs

Other matters

Anti-avoidance provisions

Where transfer values are not documented or tax authorities believe the declared values do not reflect the market price, the tax authorities can undertake arms-length revaluations.

Double tax treaties with Vietnam

Vietnam is a party to more than 80 Double Tax Agreements with other countries, and treaty relief can be sought to avoid double taxation. However, treaty relief is not automatic, and appropriate applications must be submitted for assessment by the tax authorities.

Should you require any assistance with your tax registration, compliance or other ongoing matters in Vietnam, please do not hesitate to contact us.

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Updated on April 11, 2024
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