In the Draft Decree amending and supplementing a number of articles in Decree 126 detailing a number of articles of the Law on Tax Administration, the Ministry of Finance said that it is necessary to clearly stipulate the time for deduction and tax declaration for income from dividends and bonuses in securities to limit policy abuse and prolong the time for tax obligations.
This agency proposed that personal income tax must be deducted, declared and paid immediately at the time of receiving dividends and bonuses in securities, instead of waiting until the securities are sold. The issuing organization is responsible for deducting and paying taxes on behalf of individuals.
In fact, dividends and profits are being paid in many forms such as cash, securities, or capital increase. Of which, cash dividends are deducted by the paying organization, declared and paid for tax by the individual and have been applied effectively and smoothly in the past.
However, for income from dividends and bonuses paid in securities, investors only have to pay tax when selling or transferring those stocks, not immediately upon receiving dividends.
The Ministry of Finance believes that this regulation is inconvenient, mainly because many individuals who receive dividends and bonuses in the form of securities do not need to transfer shares or capital for a long time. This helps investors (especially large shareholders and strategic shareholders) not have to declare and pay taxes immediately at the time of income, while assets and income continue to increase.
Therefore, when an individual receives dividends (regardless of whether it is cash or securities), it is considered income (without having to wait until the securities are transferred and cash flow is generated).
Many shareholders have not transferred immediately after receiving dividends in the form of stocks (Illustration: Dang Duc).
According to the Ministry of Finance, in the period 2016-2024, individuals receiving dividends in the form of securities and individuals who are existing shareholders receiving bonuses in the form of securities received a total of 34.84 billion shares.
If all of these shares are transferred and the share price is calculated at par value (10,000 VND), with a tax rate of 5%, the estimated personal income tax to be declared and paid is about 17,420 billion VND.
However, in reality, according to the Ministry of Finance, the amount of personal income tax from the income of individuals receiving dividends in securities and existing shareholders receiving bonuses in securities declared during the above period is only about VND 1,318 billion, accounting for nearly 8% of the estimated VND 17,420 billion mentioned above (if all of these shares are transferred).
According to statistics from this ministry, in the period of 2016-2024, the total personal income tax declared from capital investment activities reached VND51,965 billion, of which tax collected from dividends and bonuses paid in securities was only about VND1,318 billion, accounting for 2.54%.
Source: https://dantri.com.vn/kinh-doanh/ly-do-bo-tai-chinh-muon-thu-thue-ngay-khi-co-dong-nhan-co-tuc-chung-khoan-20250701004928914.htm
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