Understanding Personal Income Tax On Securities Transfers! (Official Letter 5107)

⚠️ Are you trading securities? Don’t miss this important regulation! ⚠️

The Tax Department has just issued Official Letter No. 5107/CT-CS (dated 12 October 2025) clarifying personal income tax (PIT) policies on capital transfers, especially securities transactions.

👉 Let’s review the essential rules every investor must know to comply with tax obligations!

The Tax Department received petition No. 1757195002847 from reader Vuong Tien Thong regarding PIT regulations under Circular No. 111/2013/TT-BTC. In response, the Tax Department provides the following explanation:

According to Clause 4, Article 2 of Circular 111/2013/TT-BTC, as amended by Circular 25/2018/TT-BTC, income from capital transfers is subject to PIT. This includes income from transferring capital contributions in limited liability companies, partnerships, cooperatives, economic organizations, and other entities; income from securities transfers (such as shares, bonds, rights to purchase shares, fund certificates, etc.); and other forms of capital transfer as prescribed by law.

As stipulated at Point b.2, Clause 2, Article 11 of Circular 111/2013/TT-BTC, individuals transferring securities must temporarily pay PIT at a rate of 0.1% on each transfer price, regardless of whether the 20% tax rate applies under the self-declaration method.

The tax payable is calculated as follows:

PIT Payable = Transfer Price per Transaction × 0.1%

These regulations ensure consistency, feasibility, and alignment with current tax administration practices. The 0.1% tax rate is considered a simple and effective approach, suitable for the characteristics of securities transactions and existing data management systems, ensuring transparency and timely fulfillment of tax obligations.

The Tax Department provides this information for readers’ understanding and appreciates the feedback, which will be considered in the process of improving PIT policy.

(According to Official Letter No. 5107/CT-CS dated 12 October 2025)

Ngan Ho