The General Department of Taxation said that this issue is being implemented according to the current regulation, which is Circular No.111/2013/TT-BTC. Specifically, Point g, Clause 3, Article 2 provides “Income from dividends paid in shares, income from profits recorded in capital increase”; Point b, c Clause 3, Clause 4 Article 10 stipulates “For income from profits recorded in capital increase as guided at Point g, Clause 3, Article 2 of this Circular, the time of determination of income from capital investment is the time when individuals transfer capital or withdraw capital "," For income from dividends paid in shares as guided at Point g, Clause 3, Article 2 of this Circular, time of determination of income from capital investment is the time when the individual transfers shares”, the PIT calculation method is taxed income x 5% tax rate.
Thus, when individuals transfer securities of the same type, transfer capital, withdraw capital, they must pay at the same time PIT on income from capital investment (tax rate of 5%) and income from capital transfer is prescribed law on PIT. Decree No.126/2020/ND-CP only regulates the change of the subject of PIT declaration and payment (from capital investment, capital transfer). Specifically, instead of self-declaration, the decree stipulates that organizations are responsible for declaring and paying tax on behalf of individuals receiving stock dividends; individuals who are existing shareholders receive securities rewards, individuals are recognized for the capital increase due to increased capital gains.
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