THE MINISTRY OF FINANCE
SOCIALIST REPUBLIC OF VIET NAM
Hanoi, August 10, 2006
AMENDING AND SUPPLEMENTING THE FINANCE MINISTRY’S CIRCULAR No. 100/2004/TT-BTC OF OCTOBER 20, 2004, GUIDING THE APPLICATION OF VALUE ADDED TAX AND ENTERPRISE INCOME TAX IN THE SECURITIES DOMAIN
Pursuant to the 1997 Value Added Tax (VAT) Law and the 2003 Law Amending and Supplementing a Number of Articles of the VAT Law and the guiding documents;
Pursuant to the 2003 Enterprise Income Tax (EIT) Law and the guiding documents;
Pursuant to the Government’s Decree No. 77/2003/ND-CP of July 1, 2003, defining the functions, tasks, powers and organizational structure of the Finance Ministry;
The Finance Ministry hereby amends and supplements a number of contents in its Circular No. 100/2004/TT-BTC of October 20, 2004, guiding the application of VAT and EIT in the securities domain as follows:
1. To replace Item 2.2, Point 2, Section III of Circular No. 100/2004/TT-BTC with the following new one:
“2.2. Other organizations, including foreign investment funds, foreign organizations, which are established under foreign laws, do not have the legal person status in Vietnam but open their securities investment accounts in Vietnam, organizations established and operating under Vietnamese law (except for securities companies, fund management companies and organizations defined in Item 2.1, Point 2, Section III of Circular No. 100/2004/TT-BTC) shall pay presumptive EIT as follows:
a/ Payable presumptive tax amount:
- For the transfer of securities (stocks, investment fund certificates, bonds, excluding tax-free bonds), the payable tax amount shall be equivalent to 0.1% of the total value of securities sold at the time of transfer.
- For bond interests (except for tax-free bonds), the payable tax amount shall be equivalent to 0.1% of the total value of bonds (including bond par value and receivable interests) at the time of receipt of interests.
Profits earned from investment in stocks and investment fund certificates for which EIT has been paid shall not be subject to EIT.
b/ Declaration and payment of presumptive tax:
- For listed securities: Securities companies shall have to withhold EIT amounts and, on behalf of investing organizations, make tax declarations (according to a set form, not printed herein), payment and finalization under the guidance at Point 3 of this Circular.
- For unlisted securities:
In cases where securities companies are authorized to manage all the lists of investors and carry out procedures for transferring stocks among investors, the withholding of tax amounts and EIT declaration, payment and finalization shall also be made as in the case of listed securities.
In cases where securities companies are not authorized to manage the lists of investors or manage the securities transfer or are only authorized to partially manage lists of investors for transfer registration and payment of dividends (in cases investors are outside or far away from such companies), the EIT declaration and payment shall be made as follows:
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