According to the Ministry of Finance , the regulations on personal income tax (PIT) for individuals receiving dividends in securities, individuals who are existing shareholders receiving dividends in securities, and individuals who are recognized for additional capital due to profits recorded in capital increase are currently inadequate. According to the current PIT Law, income from capital investment is one of the taxable incomes, the time to determine taxable income from capital investment is the time when the organization or individual pays income to the taxpayer or the time when the taxpayer receives income.
In fact, dividends are paid in many forms such as cash, securities, or both cash and securities to shareholders; dividends are paid in the form of recording the increased capital for capital contributors (in a non-stock company). For cash dividends, the paying organization deducts and pays tax. However, dividends in securities and bonuses in securities to shareholders, recording the increased capital, the time of receiving and recording the increased capital has not been paid, so personal income tax has not been paid, but only when the individual transfers the securities must declare and pay personal income tax. This creates an inconvenience because individuals have not transferred immediately or do not have the need to transfer, so they do not have to declare and pay tax, while in reality the assets and income of the individual are constantly increasing. The Drafting Committee believes that at the time of payment in securities, the individual has generated income from capital investment and this income must be declared and paid tax.
Proposal to receive dividends in shares and pay tax immediately
PHOTO: NGOC THANG
With the current regulations, the drafting committee believes that the tax payment time is prolonged, affecting the effectiveness of tax management and slowing down the state budget collection process. Not taxing immediately when actual income arises also causes the assets and income of shareholders, especially large shareholders and strategic shareholders, to increase but not be regulated in a timely manner. The Ministry of Finance believes that this poses a risk of tax loss and increases the monitoring burden for management agencies. Changing the tax calculation time will help increase the initiative of the budget, make the income stream from capital investment transparent and ensure fairness between forms of dividend payment.
Data from the tax sector shows that in the period of 2016 - 2024, the total declared personal income tax from capital investment reached nearly 52,000 billion VND, of which tax from dividends and stock bonuses accounted for only about 1,318 billion VND - equivalent to 2.54%. According to the Vietnam Securities Depository and Clearing Corporation, the declared personal income tax from capital investment from 2016 to the end of 2024 is about 51,965 billion VND. Of which, the personal income tax collected from dividends and profits paid in cash to individuals is 50,350 billion VND, accounting for about 96.89%; the personal income tax collected from foreign capital investment is 135 billion VND, accounting for about 0.26%; the personal income tax collected from capital increase profits is 162 billion VND, accounting for about 0.31%; Personal income tax collected from the remaining two income sources (dividends paid in securities, bonuses paid to existing shareholders in securities) is about 1,318 billion VND, accounting for about 2.54%.
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 are 34.84 billion shares. If all of these shares are transferred and the stock price is calculated at par value (10,000 VND), with a tax rate of 5%, the estimated personal income tax amount to be declared and paid is about 17,420 billion VND. Thus, the personal income tax amount from the income of individuals receiving dividends in securities and individuals who are existing shareholders receiving bonuses in securities declared during the period from 2016 to the end of 2024 is about 1,318 billion VND, accounting for only about 8% of the estimate (if all of these shares are transferred), then the total personal income tax amount to be declared and paid is about 17,420 billion VND.
To limit the exploitation of policies and prolong the time for performing the obligation to declare and pay personal income tax, it is necessary to clearly stipulate the time of deduction and amend the time of declaring personal income tax for income from dividends paid in securities, income from bonuses paid in securities to existing shareholders, income from capital recognized as increased due to capital increase when the organization pays dividends and bonuses in securities in Decree No. 126/2020 to comply with the provisions of the Personal Income Tax Law.
Source: https://thanhnien.vn/kien-nghi-co-tuc-bang-chung-khoan-phai-nop-thue-ngay-1852507010812285.htm
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