Regulations on the Calculation of Personal Income Tax (PIT) on Income from Capital Transfers Effective from 1 July 2026
(Pursuant to Article 53 of Decree No. 253/2026/ND-CP)
1. Method of Calculating Personal Income Tax
Personal Income Tax (PIT) on income from capital transfers of resident individuals shall be determined for each transfer transaction as follows:
PIT payable = Taxable income × 20%
Taxable income = Transfer price − Purchase price of the transferred capital − Reasonable expenses related to the transfer.
Where the purchase price or related expenses cannot be determined, PIT shall be calculated as follows:
PIT payable = Transfer price × 2%.
2. Determination of the Transfer Price
The transfer price is the actual amount received by the individual under the capital transfer agreement.
Special cases:
- Payment by installments or deferred payment: The transfer price does not include installment interest or deferred payment interest. Such interest shall be regarded as income from capital investment and shall be subject to tax in accordance with the applicable regulations.
- Where the agreement does not specify the transfer price, or the stated price is not consistent with the prevailing market transaction price: The tax authority has the right to inspect, verify, and determine the transfer price in accordance with the regulations on tax administration.
3. Determination of the Purchase Price of the Transferred Capital
The purchase price is the total value of the capital contribution at the time of transfer, including the initial capital contribution and any additional capital contributions or acquisitions.
Specifically:
- For capital contributions: The purchase price shall be determined based on the accumulated value of the capital contribution according to accounting books, invoices, and lawful supporting documents.
- For purchased capital interests: The purchase price shall be determined based on the value at the time of purchase, according to the capital transfer agreement and payment documents.
4. Deductible Reasonable Expenses
Expenses deductible when determining taxable income must be actually incurred and supported by valid invoices and lawful documents, including:
- Expenses incurred for carrying out legal procedures relating to the capital transfer;
- Fees and charges payable to the State budget in accordance with regulations;
- Other reasonable expenses supported by documentary evidence.
For expenses incurred overseas, the supporting documents must be certified by a notary public or an independent auditing organization in the country where the expenses are incurred and translated into Vietnamese in accordance with regulations.
5. Time of Determination of Taxable Income
Taxable income shall be determined at:
- The time when the capital transfer transaction is completed in accordance with the law; or
- The time when the procedures for changing the list of capital contributors or members are completed.
6. Cases of Capital Contribution by Contributing an Existing Capital Interest
Where an individual contributes an existing capital interest as capital to another enterprise, PIT is not payable at the time of the capital contribution.
When the capital interest is subsequently transferred, withdrawn, or the enterprise is dissolved, the individual must declare and pay PIT on the income from the capital transfer that was previously not subject to tax.
The taxable income relating to such capital contribution shall be determined based on the value of the capital interest stated in the capital contribution agreement at the time of contribution.
Where only part of the contributed capital is transferred or withdrawn, the individual shall pay PIT corresponding to the value of the capital transferred or withdrawn until the full value of the contributed capital has been exhausted.
Taxable Income from Capital Transfers Subject to Personal Income Tax (PIT) from 2026
(Pursuant to Article 10 of Decree No. 253/2026/ND-CP)
Taxable income from capital transfers as prescribed in Clause 4, Article 3 of the Law on Personal Income Tax 2025 includes the following:
(1) Income from the Transfer of Capital Contributions
Income arising from the transfer of part or all of a capital contribution in:
- Limited liability companies (LLCs);
- Partnerships;
- Business cooperation contracts (BCCs);
- Cooperatives and unions of cooperatives;
- People’s credit funds;
- Other organizations as prescribed by law.
(2) Income from Securities Transfers
Income derived from the transfer of:
- Shares and share subscription rights;
- Bonds and treasury bills;
- Fund certificates;
- Other securities as prescribed by the laws on securities;
- Income from the transfer of shares by individuals in joint-stock companies in accordance with the Law on Securities and the Law on Enterprises.
(3) Income from Contributing Capital Using Capital Contributions or Securities
Income arising where an individual uses capital contributions or securities to:
- Establish an enterprise; or
- Make additional capital contributions or increase the charter capital of an enterprise in accordance with the law.
(4) Income from Other Forms of Capital Transfers
Income arising from:
- The sale of an enterprise;
- The transfer of capital contribution rights;
- Other forms of capital transfers as prescribed by law.
(5) Special Case
Where an individual transfers the entire private enterprise or single-member limited liability company owned by that individual in the form of a capital transfer associated with real estate, the resulting income shall be treated as income from the transfer of real estate and shall not be subject to the provisions governing income from capital transfers.
Scope of Taxable Income for Personal Income Tax (PIT)
(Pursuant to Clause 2, Article 6 of Decree No. 253/2026/ND-CP)
- For resident individuals: Taxable income includes all income earned both within and outside the territory of Vietnam, regardless of where the income is paid or received.
- For non-resident individuals: Taxable income includes income arising within the territory of Vietnam, regardless of where the income is paid or received.
