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Vietnam Capital Gains Tax

Understanding Vietnam’s Capital Gains Tax (CGT) is crucial for those buying or selling assets. In this article, Apluslaw will provide a comprehensive overview of CGT regulations, detailing tax rates and procedures for various transactions, ensuring compliance with Vietnamese tax laws.

What’s Capital Gains Tax?

Capital Gains Tax (CGT) is a direct tax levied on the profit realized on the sale of an asset that was purchased at a cost lower than the sale price. The most common capital gains are realized from the sale of stocks, bonds, precious metals, and property.

The specific legal provisions regarding Capital Gains Tax can be found in the Vietnamese Tax Law, particularly in the sections related to Corporate Income Tax and Personal Income Tax. These laws outline the rates, procedures, and obligations for taxpayers involved in the disposal of assets.

Capital Gains Tax for foreign entities and individuals

Foreign entities and individuals disposing of capital/securities in Vietnamese companies are subject to different tax rates depending on the type of disposal:

Entity Type	Disposal Type	Tax Type	Tax Rate	Legal Source
Corporate Entities	Disposal of Securities (Joint Stock Company)	Corporate Income Tax	0.1% of the proceeds	Article 10, Law on Corporate Income Tax
	Disposal of Capital (Limited Liability Company)	Corporate Income Tax	20% on the gain	Article 14, Law on Corporate Income Tax
Individuals	Disposal of Securities (Joint Stock Company)	Personal Income Tax	0.1% of the proceeds	Article 23, Law on Personal Income Tax
	Disposal of Capital (Limited Liability Company)	Personal Income Tax	20% on the gain	Article 26, Law on Personal Income Tax

Capital Gains Tax for Vietnamese entities and individuals

Vietnamese entities and individuals disposing of capital/securities in Vietnamese companies are subject to the following tax rates:

Corporate Entities Disposing:

• Gains on the disposal of capital/securities in a Vietnamese entity are subject to Corporate Income Tax at the standard rate of 20% on the gain and treated as other income.

Individuals Disposing:

• Disposal of Securities (Joint Stock Company): Personal Income Tax is levied at the rate of 0.1% of the proceeds.
• Disposal of Capital (Limited Liability Company): Personal Income Tax is levied on gains from transfers of capital at a rate of 20% on the gain​. 

Capital Gains Tax declarations and payments

The responsibility for declaring and remitting taxes on gains from the disposal of capital/securities in Vietnamese companies varies based on the seller and the nature of the transaction:

Seller	Buyer	Responsible Party	Time of Tax Declaration	Legal Source
Vietnamese Entity	Any Seller	Seller	Year-end CIT Finalisa	Article 11 Law on Corporate Income Tax
Offshore Entity	Vietnamese Entity	Buyer	When each transaction occurs	Article 11 Law on Corporate Income Tax
Offshore Entity	Offshore Entity	Vietnamese Target Company	When each transaction occurs	Law on Corporate Income Tax
Non-Tax Resident Individual	Vietnamese Entity/Tax Resident Individual	Buyer	Monthly/Quarterly basis	Article 18 Circular No. 111/2013/TT-BTC
Tax Resident Individual	Any Seller	Seller	When each transaction occurs	Article 15, Law on Personal Income Tax

Capital Gains Tax consulting lawyer service

For assistance with tax registration, compliance, or other ongoing matters related to Capital Gains Tax in Vietnam, professional consulting lawyer services are available. These services can help navigate the complexities of tax regulations, including the application of double tax treaties and anti-avoidance provisions.

A+ lawyers provide tax legal advice

With a team of experienced, talented, enthusiastic and dedicated lawyers, A+ Law is proud to be the leading unit in consulting and resolving tax issues for foreign investors including the following services:

• Consulting on determining tax obligations: tax amount payable, tax exemption, tax reduction, tax deduction, tax calculation price, tax rate.
• Consulting on procedures: registration, declaration, tax payment, tax settlement, inspection and handling of violations, tax complaints.
• Consulting on accounting regimes: accounting standards, invoices, documents.
• Consulting on cooperation and business plans: forecasting arising tax obligations
• Authorized representative to carry out tax procedures.

Reasons for choosing Law A+:

Good expertise, lots of experience

A+ Law’s team of lawyers are all excellent lawyers, familiar with legal regulations, and understand how litigation agencies and Party supervision agencies operate. In addition, A+ lawyers have fought and are experienced in criminal cases.

Understanding

A+ Lawyers understands the fear and confusion of clients when faced with a situation where they may have to go to jail, may be unjustly wronged, and wishes to receive full support 24/7 from expertise to safety. psychological mind. Therefore, we will do our best to bring peace of mind and fairness to our customers and clients.

Committed to the end

The journey to achieving justice for customers may not be smooth and straightforward. That journey may take many years and many levels of trial. A+ Lawyer commits to accompany and protect clients until justice and fairness are achieved.

Understanding and complying with Vietnam’s Capital Gains Tax (CGT) regulations is crucial for all entities to avoid legal issues. Consulting a tax professional or lawyer is recommended for personalized guidance. Staying informed helps optimize financial strategies and minimize tax liabilities. This ensures smooth and profitable transactions in Vietnam. If you still have any questions related to this issue, please contact lawyer A+ via email: contact@apluslaw.vn or via phone number: 0899511010 for support and advice.