Tax calculation methods are determined as follows:

- For Individuals, income tax included:

• Personal income tax from securities transfer
• Personal income tax from capital investment

As follows:

• Personal income tax from securities transfer:

According to Article 16 of the Circular 92/2015/TT-BTC of the Ministry of Finance, a tax rate of 0.1% on the securities transfer price each time is applied to individuals

Tax calculation method:

In which, securities transfer price is:

+ For securities of a public company on the Stock Exchanges, the securities transfer price is the exercise price at the Stock Exchanges. The exercise price is the securities price determined from the order matching results or the price formed from the put-through transactions at the Stock Exchanges.

+ For other securities that not mentioned above, the transfer price is the price stated in the contract for transfer or the actual transfer price or the price according to the accounting books of the unit having the transferred securities at the time of making the recent financial statements in accordance with the law on accounting before the time of transfer.

• Personal income tax from capital investment

Pursuant to Decree No. 126/2020/ND-CP dated October 19, 2020 detailing a number of articles of the Law on Tax Administration and Section d, Article 10 of Circular 111/2013/TT-BTC dated August 15, 2013 guiding the implementation of the Law on Personal Income Tax (PIT), Income from stock dividends is taxable income from capital investment, with tax calculation as follows: 

+ The basis for determining the amount of personal income tax payable on income from capital investment is the dividend value recorded in the accounting books or the number of shares actually received multiplied (*) by the par value of the shares and personal income tax rate on capital investment income.

+ In case the transfer price of received shares instead of dividends is lower than the par value, personal income tax on capital investment activities will be calculated at the market price at the time of transfer.

+ After receiving dividends in shares or bonus shares, if an individual transfers the same kind of shares, he/she will declare and pay personal income tax on received dividends in shares until the number of received shares to receive instead of dividends is exhausted.

=> Thus, applying this calculation method, investors is not allowed to refund securities income tax.

• Example: Mr. K is a shareholder of Joint Stock Company X (listed on the Stock Exchange). In 2011, Mr. K received 5,000 shares to pay dividends of company X (par value of shares is VND10,000). In February 2014, Mr. K transferred 2,000 shares of company X at the price of VND30,000 per share. In August 2014, Mr. K transferred 7,000 shares at the price of VND20,000 per share.

• When transferring, Mr. K have to pay personal income tax on income from capital invesment and income from securities transfer as follows:

+ For the transfer in February 2014

•  Personal income tax on income from capital investment:

(2,000 shares × VND10,000) * 5% = VND1,000,000

• Personal income tax (temporary payment) on income from securities transfer:

(2,000 shares × VND30,000) * 0.1% = VND60,000

+ For the transfer in August, 2014

• Personal income tax on income from capital investment

(3,000 shares * VND10,000) * 5% = VND1,500,000

• Personal income tax (temporary payment) on income from securities transfer

(7,0 shares * VND20,000) * 0,1% = VND140,000

- For Organizations, organizations that generate income from securities transfer need to pay profit tax as follows:

+ Pursuant to Article 15, Circular 78/2014/TT-BTC, profit tax payable when transferring securities is calculated as follows:

• Taxable income from securities transfer of a company is the income obtained from the transfer of stocks, bonds, fund certificates and other securities according to regulations. 

• In which, taxable income from securities transfer in the period is determined by the selling price of securities minus (-) the purchase price of the transferred securities, minus (-) expenses related to the transfer.

If you want to transfer your securities from other securities companies to the account you opened at FPTS, you need to bring only ID Card/Citizenship Card to those securities companies and conduct procedures for securities transfer.