Nội dung toàn văn Official Dispatch No. 1433/TCT-PCCS, On exemption from business income tax on
THE MINISTRY OF FINANCE | SOCIALIST REPUBLIC OF VIET NAM |
No. 1433/TCT-PCCS | Hanoi, April 19, 2006 |
To: Taya (Vietnam) Electric Wire and Cable Joint-Stock Company
In response to Official Letter No. 31032006 dated March 31, 2006, of Taya (Vietnam) Electric Wire and Cable Joint-Stock Company, requesting exemption from business income tax (BIT) for shares of stock sold by its overseas shareholders to the market, the General Department of Taxation gives the following opinions:
According to the provisions of Point 2.2, Section III of the Finance Ministry's Circular No. 100/2004/TT-BTC of October 20, 2004, guiding VAT and BIT in securities business, other organizations, including foreign investment funds, which open their accounts in Vietnam without making their presence in Vietnam for investing in securities, shall pay business income tax in prefixed sums. The payable tax amount shall be equal to 0.1% of the total value of shares of stock sold per transfer transaction.
Under the aforesaid provisions, if a shareholder being an overseas company sells its shares of stock in Vietnam and authorizes your company to collect the whole proceeds from the sale, then such shares of stock will be liable to business income tax and for which a tax amount equal to 0.1% of the total value of shares of stock sold per transaction will be paid.
Since the aforesaid provisions uniformly apply to foreign organizations investing in securities in Vietnam. Your company's request for BIT exemption cannot be met.
Above is the General Department of Taxation's reply to Taya (Vietnam) Electric Wire and Cable Limited Joint-Stock Company.
| FOR THE GENERAL DIRECTOR OF TAXATION |
