Nội dung toàn văn Official Dispatch No. 835/TCT-TNCN on personal income tax on stocks bonus
|
THE GENERAL DEPARTMENT OF TAXATION |
SOCIALIST REPUBLIC OF VIET NAM |
|
No. 835/TCT-TNCN |
Hanoi, February 15, 2008 |
OFFICIAL LETTER
ON PERSONAL INCOME TAX ON STOCKS BONUS
To: The Tax Department of Can Tho province
In response to Official Letter No. 250/CT-TTHT of November 13, 2007, of the Tax Department, requesting guidance on personal income tax on stocks bonus divided from welfare funds, the General Department of Taxation gives the following opinions:
Points 2.1 and 3 of Section I of the Finance Ministry’s Circular No. 81/2004/TT-BTC of August 13, 2004, guiding the implementation of the Government’s Decree No. 147/2004/ND-CP of July 23, 2004, detailing the implementation of the Ordinance on Income Tax on High-Income Earners; and the General Department of Taxation’s Official Letter No. 1867/TCT-TNCN of May 15, 2007, guiding personal income tax on bonus stocks for employees stipulates: Personal incomes generated from dividing bonus from welfare funds by enterprises are regarded as regular incomes subject to personal income tax. In case cadres and employees of a company use their own money to buy stocks bearing their individual names (personal stocks ownership), then sell these stocks and divide the proceeds from stock sale, their income amounts generated from the proceeds is temporarily not subject to personal income tax. Incomes subject to personal income tax, in each specific case, shall be determined as follows:
- In case the company uses the welfare fund to buy stocks and gives them as bonuses for its cadres and employees (those with the right to own stocks ownership), these cadres and employees’ taxable incomes are calculated at the actual price that the company bought these stocks for use as bonuses for its cadres and employees.
- In case the company uses the welfare fund to buy or sell stocks and gives them as bonuses for its cadres and employees (those without the right to own stocks), these taxable incomes are calculated according to money amounts actually received by individuals at the time of bonus distribution.
The General Department of Taxation would like to give above answer to Can Tho Tax Department for information and implementation.-
|
|
FOR THE GENERAL DIRECTOR OF
TAXATION |
