Ho Chi Minh City, 12 August 2025
On 22 July 2025, the Ministry of Finance released a draft of the new Law on Personal Income Tax (the “Draft New PIT Law”) for public comments, which is proposed to replace the current 2007 PIT Law (as last amended in 2024). Among other changes, the key proposal relates to personal income tax (PIT) on capital and securities transfers. The proposed change aims to clarify and expand the scope of taxable income from capital and securities transfers, improving fairness and transparency in tax calculations.
Under the current PIT Law, for capital transfer transactions, taxable income is calculated as the transfer price minus the purchase price and reasonably related expenses. For income from securities transfer, the current rules apply a flat rate of 0.1% on the transfer price or proceeds per transaction. However, this calculation method is not appropriate for long-term investors or those with fluctuating incomes, particularly when losses occur but tax is still imposed. Therefore, under the Draft New PIT Law, the Ministry of Finance proposes an alternative tax calculation for capital and securities transfer transactions by individuals (including derivative securities).
PIT on capital and securities transfers may be determined based on either taxable income or transfer price. Taxable income from the transfer of capital/securities will be determined by the transfer price minus the purchase price of the transferred capital and reasonable expenses related to the generation of income from the transfer of capital/securities. The Draft New PIT Law sets out PIT calculation as follows:
For capital transfers:
| Scenario | Tax residents | Tax non-residents |
| Taxable income can be determined | 20% of taxable income, imposed on each transaction | 20% of taxable income, imposed on each transaction, regardless of whether the transfer transaction is conducted within Vietnam or overseas. |
| Taxable income cannot be determined | 2% of the transfer price | 2% of the transfer price |
For securities transfers:
| Scenario | Tax residents | Tax non-residents |
| Taxable income can be determined | 20% of taxable income, calculated annually | 0.1% of the transfer price |
| Taxable income cannot be determined | 0.1% of the transfer price per transaction |
If adopted, these changes under the Draft New Personal Income Tax Law could have a significant impact on individual investors, long-term shareholders, and frequent securities traders in Vietnam. The proposed shift in calculating PIT on capital gains and securities transfers aims to create a fairer and more transparent tax framework, but it will also require businesses and investors to reassess their investment structures, transaction documentation, and tax compliance strategies.
As the Draft New PIT Law is currently open for public consultation, this is a timely opportunity for stakeholders to provide feedback and shape the final legislation.
This update concludes the Taxation chapter from our Weekly Debrief series. Stay tuned for further insights into Vietnam’s evolving tax regulations and other legal developments affecting the business and investment landscape!
Need tailored advice on how these changes could affect you or your business? Contact our team today to discuss strategies that keep you compliant and protect your returns.
