On September 4th, 2019, Hanoi Department of Tax issued the Official Letter No.69382/CT-TTHT. Whereby:
In case a foreign enterprise transfers all contributed capital in the Company in Vietnam to a Vietnamese individual, this activity shall be considered as the income from capital transfer as regulated in Clause 1, Article 14, Circular No.78/2014/TT-BTC. If the transfer contract does not specify the payment price or the tax authority has basis to determine that the payment price is not conformable with the market price, the tax authority shall have right to recheck and fix the transfer price.
If an individual receives a capital transfer from a foreign organization without a permanent establishment in Vietnam, that individual is responsible for determining, declaring, deducting and paying on behalf of the foreign organization the payable CIT amount according to the instructions as prescribed in Article 14, Circular No. 78/2014 / TT-BTC and Clause 07, Article 16 of Circular No. 151/2014 / TT-BTC
