Tax-free bonus shares below par value

(NLĐ)- The General Department of Taxation has just issued a document providing guidance on personal income tax (PIT) deduction for income from capital investment activities.

Accordingly, individuals do not have to pay personal income tax when transferring securities if the transfer price of bonus shares or shares received in lieu of dividends is lower than the par value (under VND 10,000/share).

After receiving dividends in the form of shares or receiving bonus shares, if an individual transfers the same type of shares, he/she must pay personal income tax. If the number of shares transferred for the first time is less than the number of shares received in lieu of dividends or bonus shares, personal income tax will be calculated on subsequent transfers until all of those shares are transferred.

In case an enterprise pays dividends in cash but records an increase in investment capital for shareholders, shareholders must pay personal income tax as in the case of receiving dividends in shares or receiving bonus shares.

Source: https://nld.com.vn/kinh-te/mien-thue-co-phieu-thuong-duoi-menh-gia-20100817103033992.htm