On February 23, 2024, the Hanoi Tax Department issued Official Letter No. 8983/CTHN-TTHT, which states the following:
In the case where a foreign company not present in Vietnam engages in the transfer of a portion of its ownership capital in a Vietnamese company to a non-resident individual (who is a shareholder of the company receiving the transfer), the foreign company must declare and pay corporate income tax on the capital transfer activities in Vietnam.
The tax declaration and payment shall be carried out according to the guidelines provided in Article 11 and Article 14 of Circular No. 78/2014/TT-BTC, and Article 8 of Circular No. 96/2015/TT-BTC issued by the Ministry of Finance.
In the case where a foreign company not present in Vietnam engages in gifting activities involving its ownership capital in a Vietnamese company to a non-resident individual (who is a shareholder of the company receiving the gift), the income received from the gift of this individual shall be subject to personal income tax (PIT) as specified in Clause 10, Article 2 of Circular No. 111/2013/TT-BTC. PIT on income from gifts must be paid according to the guidelines outlined in Article 23 of Circular No. 111/2013/TT-BTC.
PIT on income from gifts received by non-resident individuals shall be determined by multiplying the taxable income (x) by a tax rate of 10%. The taxable income from gifts is the portion of the gift value exceeding 10 million Vietnamese dong each time received.
