The Ministry of Finance proposes that individuals receiving dividends and bonuses in the form of securities will pay taxes immediately, instead of waiting until the transfer - Photo: AI drawing
Fear of policy profiteering if taxes are not collected immediately...
The Ministry of Finance is seeking comments on a draft decree amending and supplementing a number of articles of Decree 126 guiding the implementation of the Law on Tax Administration.
According to the Ministry of Finance, during the period from 2016 to the end of 2024, individuals receiving dividends in securities and individuals who are existing shareholders receiving bonuses in securities received a total of 34.84 billion shares.
If all of these shares are transferred and the share price is calculated at par value (10,000 VND), with a tax rate of 5%, the estimated personal income tax to be declared and paid is about 17,420 billion VND.
However, in reality, according to the Ministry of Finance, the personal income tax from the income of individuals receiving dividends in securities and existing shareholders receiving bonuses in securities declared during the above period was only about VND 1,318 billion, accounting for nearly 8% of the estimated VND 17,420 billion mentioned above (if all of these shares are transferred).
According to statistics from this ministry, in the period 2016-2024, the total personal income tax declared from capital investment activities reached 51,965 billion VND, of which tax collected from dividends and bonuses paid in securities was only about 1,318 billion VND, accounting for 2.54%.
Notably, the Ministry of Finance also cited international experience from Thailand and India showing that these countries stipulate that the time for calculating tax is when dividends are paid, and organizations issuing shares paying dividends are obliged to deduct tax at the tax rate of dividends in shares.
Thailand applies a tax rate of 10%, while India applies a tax rate of 10% on income exceeding 5,000 rupees.
How will the tax rate be calculated?
To limit the exploitation of policies and prolong the time for performing the obligation to declare and pay personal income tax, the Ministry of Finance believes that it is necessary to clearly stipulate the time for deduction and amend the time for declaring personal income tax for income from dividends, bonuses paid in securities, and income from capital increased due to capital increase profits.
Accordingly, the tax authority has proposed that personal income tax will be deducted, declared and paid immediately when individuals receive dividends and bonuses in the form of securities.
"Do not wait until transferring securities of the same type to declare and pay personal income tax on this income," the Ministry of Finance stated.
At the same time, the income-paying organization will deduct personal income tax at the time the enterprise pays dividends and bonuses, according to the previous notice sent to shareholders.
The Ministry of Finance also added a method for determining the amount of personal income tax to be deducted. Accordingly, the amount of personal income tax deducted is determined by multiplying the value of dividends, profits, and bonuses by the personal income tax rate from capital investment (5%).
Under current regulations, dividends and profits are paid in many forms such as cash, securities or recognition of increased capital contributions.
With cash dividends, the paying organization has deducted, declared and paid taxes on behalf of the individual.
However, with dividends or bonuses in the form of securities, or capital increase, because the money has not been received, tax is not yet payable, but must be declared when the individual transfers or withdraws capital.
The tax authority considers this regulation inappropriate, because many shareholders have not transferred immediately after receiving or have no need to transfer, while their assets are constantly increasing.
Source: https://tuoitre.vn/de-xuat-nop-thue-ngay-khi-nhan-co-tuc-bang-chung-khoan-khong-doi-luc-chuyen-nhuong-20250630193711854.htm
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