According to the Official Dispatch, to intensify the administration of personal income tax from investments and ensure that taxpayers are persons with income from dividends in the form of stocks or bonus shares paid to current shareholders and organizations responsible for declaring and paying taxes on behalf of individuals determine the obligations to declare and pay personal income tax regarding income from investments when individuals transfer stocks of the same type in compliance with the law, the General Department of Taxation of Vietnam requests Tax Departments to:
- Develop dissemination plans with forms conforming with the actual management of local taxpayers to provide disseminations for individuals receiving dividends in the form of stocks or bonus shares and organizations declaring and paying tax on behalf of individuals (including securities companies, commercial banks providing securities depository services, fund management companies, and issuers).
- Disseminate the responsibilities of organizations declaring and paying tax on behalf of individuals from January 1, 2024 regarding income from investments when individuals are transferring stocks of the same type. Regarding stocks recorded in securities accounts from December 31, 2022 to before of individuals who have yet to declare tax or have tax declared or paid by organizations, provide guidelines on tax declaration and payment and notes concerning the implementation time for such individuals according to Clause 11 Article 16 of the Law on Tax Administration 2019.
The General Department of Taxation of Vietnam has developed documents guiding personal income tax declaration and payment regarding income from dividends in the form of stocks (Appendix 1 – Document on dissemination of guidelines for individuals receiving dividends in the form of stocks and Appendix 2 – Document on dissemination of guidelines for organizations declaring and paying tax on behalf of individuals receiving dividends in the form of tax on ftp//:ftp.tct.vn/public/VPTCT/DNNCN/TaiLieu2024).
Tax Departments are quested to send documents to organizations declaring and paying tax on behalf of individuals on obligations to declare and pay tax on behalf of individuals according to regulations and request such organizations to disseminate such documents to individuals who are shareholders and individuals with securities accounts for acknowledgment and implementation.
Additionally, regarding organizations declaring and paying tax on behalf of individuals that have yet to fulfill their obligations for individuals, Tax Departments shall adopt tax administration measures as per regulation to review and urge such organizations to fulfill their obligations to declare and pay personal income tax on behalf of individuals regarding individuals’ income from dividends in the form of stocks or bonus shares paid to current shareholders as per regulation.
During the tax inspection or examination, it is necessary to focus on inspecting whether the personal income tax declaration and payment on behalf of individuals receiving dividends in the form of stocks or bonus shares and the tax declaration and payment of individuals with income from investments when such individuals are transferring stocks of the same type comply with the law.
Tax Departments shall implement general regulations, submit periodic reports by the fifth day of every month and irregular reports when quested following the form (prescribed in Appendix 5 – Form of report on the review of the implementation of personal income tax declaration and payment on behalf of individuals regarding individuals’ income from investments on ftp//:ftp.tct.vn/public/VPTCT/DNNCN/TaiLieu2024) to the General Department of Taxation of Vietnam (Tax Administration Department of Small and Medium Enterprises and Business Households, Individuals) through hmduc@gdt.gov.vn.
In case Tax Departments receive requests for cooperation from other Tax Departments in reviewing organizations declaring and paying tax on behalf of individuals and individuals receiving dividends in the form of stocks or bonus shares, they shall strictly carry out the cooperation.
See more details in Official Dispatch No. 1806/TCT-DNNCN dated May 2, 2024.
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