According to VAFI, in Vietnam today, when selling bonus shares, there are two types of personal income tax, including: lump-sum tax of 0.1% on the total value of securities sold and 5% on the total value of bonus shares at par value of VND 10,000/share, regardless of whether holding bonus shares is profitable or a loss. This is a major drawback because the nature of lump-sum tax is usually only applied to the early stock market. The advantage is simplicity, however, if the securities transaction is a loss, tax must still be paid.
Meanwhile, the nature of CGT tax is to determine personal income tax when selling securities according to the formula: take the total value of securities sold at the average selling price minus the total value of securities purchased with the corresponding number of shares sold at the average buying price multiplied by the tax rate.
This method has the advantage over lump-sum tax in that the cost price of the securities is deducted before calculating tax, so according to CGT, only profits are subject to personal income tax.
VAFI recommends that the CGT method should be applied to the draft Personal Income Tax Law 2025 for securities transfer transactions on the stock market.
In addition, this unit proposed to calculate personal income tax when selling securities at a reasonable tax rate according to the formula: total value of securities sold at average selling price minus total value of securities purchased corresponding to the number of shares sold at average buying price multiplied (x) by the tax rate of 3%.
According to VAFI, the 3% rate is appropriate to motivate the development of the stock market, creating conditions for the listed enterprise system to easily mobilize huge capital sources from the residential sector and abroad.
Many countries have applied this method of calculation. In the Southeast Asian region, VAFI said, only Vietnam and Indonesia apply a lump sum tax - 0.1% of the total value of securities sold, regardless of whether the transaction is profitable or not.
VAFI proposed to include the CGT method in the draft revised Law on Personal Income Tax 2025, applicable to transactions on the stock market.
For foreign individual investors and foreign organizations that do not establish a legal entity in Vietnam but participate in investing in the Vietnamese market, the securities transfer tax is calculated similarly to domestic individual investors. At the same time, VAFI proposed to abolish the personal income tax on bonus shares.
Previously, in the draft Decree amending and supplementing Decree 126, the Ministry of Finance proposed that in case an organization pays dividends in securities or rewards in securities to existing shareholders, the organization paying income shall deduct personal income tax at the time the enterprise pays dividends or rewards stated in the notice of dividend payment or rewards to individual shareholders.
The Ministry of Finance also proposed to supplement the method of determining the amount of personal income tax to be deducted: the amount of personal income tax deducted is determined by multiplying the value of dividends, profit value, and normal value (x) with the personal income tax rate from capital investment (5%).
Source: https://baolaocai.vn/de-xuat-ban-chung-khoan-co-lai-moi-phai-nop-thue-thu-nhap-ca-nhan-post648832.html
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