News

Withholding Personal Income Tax for dividend/bonus shares

VCSC News
26/07/2021

Dear Valued Investors,

In order to comply with Decree No. 126/2020/ND-CP dated October 19, 2020 and Circular 111/2013/TT-BTC dated August 15, 2013 guiding to implement the Law on Personal Income Tax (PIT), Viet Capital Securities Joint Stock Company (VCSC) would like to inform the declaration and payment of PIT on behalf of Investors since July 19, 2021 as follows:

1. Subjects of application

Individuals receiving dividend/bonus shares sell/transfer the same type of securities

2. Time of application

Time to declare and pay tax on behalf of investors: When investors sell/transfer the same type of securities until the quantity of bonus/dividend shares is exhausted.

3. Tax calculation and deduction

Personal income tax payable = Taxable income x 5%

  • Taxable income = shares of the same type sold/transferred (only the shares actually received from dividend/bonus) x Taxable price
  • Shares sold/transferred: priority is given to calculating the shares from dividend/bonus first
  • Taxable price:
    • If selling/transferring price >= Par value: Taxable price = Par value
    • If selling/transferring price < Par value: Taxable price = Selling/transferring price.

Note:

  • In addition to paying PIT as above, investors still have to pay PIT from selling/transferring shares of 0.1% according to current regulations.
  • Investors need to provide information of securities type when making securities depository or receiving from transfer/ownership transfer to a trading account opened at VCSC and shall be responsible in case the investors do not provide such information or provide incorrect one leading to VCSC's failure to deduct PIT in accordance with the law.