What are đá bóng trực tiếp regulations on personal income tax on incomes from bonus shares in Vietnam?

What are đá bóng trực tiếp regulations onpersonal income tax on incomes from bonus shares in Vietnam?

Based on Clause 11, Article 26Circular 111/2013/TT-BTCstipulates đá bóng trực tiếp procedures for tax declaration and tax finalization as follows:

Tax Declaration and Tax Finalization

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11. Tax declaration on wages and salaries for income from bonus shares.

Individuals receiving shares as a reward from their employers are not immediately subject to wage and salary tax. When these shares are transferred, they must declare tax for đá bóng trực tiếp income from đá bóng trực tiếp transfer and đá bóng trực tiếp wage and salary income.

Simultaneously, according to Article 7Circular 111/2013/TT-BTC(provisions related to personal income tax for business individuals in this Article are abolished by Clause 6, Article 25Circular 92/2015/TT-BTC):

Tax Basis for taxable income from business and wages and salaries

đá bóng trực tiếp tax basis for income from business and wages and salaries is taxable income and tax rates. Specifically:

1. Taxable income is determined by đá bóng trực tiếp taxable income as guided in Article 8 of this Circular minus (-) đá bóng trực tiếp deductions as follows:

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2. Tax Rates

Personal income tax rates on income from business and wages and salaries are applied according to đá bóng trực tiếp progressive tax rate schedule stipulated in Article 22 of đá bóng trực tiếp Personal Income Tax Law.

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3. Tax Calculation Method

Personal income tax for income from business, wages, and salaries is đá bóng trực tiếp total tax calculated according to each income bracket. đá bóng trực tiếp tax for each income bracket is đá bóng trực tiếp taxable income of that bracket multiplied by (×) đá bóng trực tiếp corresponding tax rate of that bracket.

Accordingly, when businesses award shares to their employees, đá bóng trực tiếp income is considered taxable income from wages and salaries.

Employees are not immediately subject to wage and salary tax upon receiving shares from their employers. Tax must be declared only when đá bóng trực tiếp shares are transferred, accounting for both đá bóng trực tiếp income from đá bóng trực tiếp transfer and đá bóng trực tiếp wage and salary income.

How to declarepersonal income taxon incomes from bonus shares in Vietnam? (Image from đá bóng trực tiếp Internet)

How should employees declare personal income tax on incomes from bonus shares in Vietnam?

According to đá bóng trực tiếp guidance inCông văn 44496/CTHN-TTHT năm 2024 hướng dẫn, employees who receive bonus shares should declare personal income tax as follows:

According to đá bóng trực tiếp provisions at point d, clause 5, Article 7 ofDecree 126/2020/ND-CP, organizations declare and pay tax on behalf of individuals receiving stock dividends; shareholders receiving awarded stock; individuals whose capital increase is recorded due to profit retention; individuals contributing capital with real estate, contributed capital, or securities.

đá bóng trực tiếp timing of đá bóng trực tiếp tax declaration and payment is when đá bóng trực tiếp individual incurs a transaction transferring đá bóng trực tiếp same type of securities, transferring capital, or withdrawing capital.

When individuals receive stock dividends or shareholders receive awarded stock, đá bóng trực tiếp organization is responsible for declaring and paying tax on behalf of đá bóng trực tiếp individuals when they transfer đá bóng trực tiếp same type of securities as follows:

When securities are traded on đá bóng trực tiếp stock exchange:

- Securities companies, commercial banks where individuals have deposit accounts, or fund management companies are responsible for declaring and paying tax on behalf.

When securities are not traded on đá bóng trực tiếp stock exchange:

- For securities of public companies registered at đá bóng trực tiếp Securities Depository Center, đá bóng trực tiếp responsibility still belongs to đá bóng trực tiếp securities company or commercial bank.- For securities of joint-stock companies that are not public companies but authorize securities companies to manage đá bóng trực tiếp list of shareholders, đá bóng trực tiếp securities company will declare đá bóng trực tiếp tax on behalf of them.- If not falling into đá bóng trực tiếp above cases, đá bóng trực tiếp issuing organization will have đá bóng trực tiếp responsibility to declare and pay tax on behalf.

Additionally, Clause 8, Article 1 ofDecree 91/2022/ND-CPsupplements Clause 4, Article 43 ofDecree 126/2020/ND-CPas follows:

Provisions at point d.1, clause 5, Article 7 ofDecree 126/2020/ND-CPare implemented from January 1, 2023.

In cases where individuals receive dividends in đá bóng trực tiếp form of securities, shareholders receiving awarded shares are recorded in đá bóng trực tiếp investor's securities account before or on December 31, 2022, and have not been declared or paid tax by đá bóng trực tiếp securities companies, commercial banks where đá bóng trực tiếp individual has a deposit account, đá bóng trực tiếp fund management company where đá bóng trực tiếp individual entrusts their portfolio, or đá bóng trực tiếp issuing organization, đá bóng trực tiếp individuals will declare and pay personal income tax according to đá bóng trực tiếp personal income tax laws and will not be penalized for late submission of tax returns or charged late payment fees (if any) as stated in Clause 11, Article 16 ofTax Administration Law 2019from December 5, 2020, to đá bóng trực tiếp end of December 31, 2022.

Thus, đá bóng trực tiếp responsibility for tax declaration and payment in đá bóng trực tiếp case of companies with listed shares traded on đá bóng trực tiếp stock exchange, individuals receiving stock dividends (securities not through đá bóng trực tiếp stock exchange system), đá bóng trực tiếp organization will declare and pay taxes as follows:

- Registered securities of public companies at đá bóng trực tiếp Central Securities Depository, đá bóng trực tiếp organization will declare and pay tax on behalf of individuals receiving stock dividends; current shareholders receiving awarded stock as per point d, clause 5, Article 7 ofDecree 126/2020/ND-CP, effective from January 1, 2023.

Tariffs and personal income tax rates for income from wages and salaries in Vietnam

Based on đá bóng trực tiếp provisions of Article 7Circular 111/2013/TT-BTC, đá bóng trực tiếp tax basis for income from business and wages and salaries is taxable income and tax rates.

Personal income tax rates on income from business and wages and salaries are applied according to đá bóng trực tiếp progressive tax rate schedule stipulated in Article 22 of đá bóng trực tiếpPersonal Income Tax Law 2007, specifically:

Personal income tax for income from business, wages, and salaries is đá bóng trực tiếp total tax calculated according to each income bracket. đá bóng trực tiếp method of tax calculation is as follows:

Tax at each income bracket = (Taxable income of đá bóng trực tiếp bracket) × (Corresponding tax rate of đá bóng trực tiếp bracket)

To summarize, employees receiving bonus shares are subject to personal income tax on wages and salaries. Employees will not be immediately subject to personal income tax at đá bóng trực tiếp time of receiving đá bóng trực tiếp bonus shares; rather, they will have to pay personal income tax on đá bóng trực tiếp gains from đá bóng trực tiếp transfer of shares.

đá bóng trực tiếp responsibility for personal income tax declaration falls upon đá bóng trực tiếp organizations declaring on behalf of đá bóng trực tiếp individuals as stipulated in point d, clause 5, Article 11 ofDecree 126/2020/ND-CP. đá bóng trực tiếp method of calculating personal income tax payable on income from wages and salaries is based on đá bóng trực tiếp aforementioned formula.