On April 11, 2024, the General Department of Taxation issued Circular No. 1504/TCT-DNNCN addressing the complexities of tax policies concerning the transfer of shares in joint-stock companies where shareholders contribute capital using real estate.
According to legal provisions, individuals who contribute capital using real estate are not required to declare or pay taxes on the transfer of capital at the time of contribution. However, when transferring capital, withdrawing capital, or dissolving a personal business entity, individuals are obligated to declare and pay taxes on income from the transfer of real estate during capital contribution and income from the transfer of capital or real estate during capital transfer. The calculation of personal income tax on capital transfer within joint-stock companies follows the regulations stipulated in Articles 16 and 17 of Circular No. 92/2015/TT-BTC dated June 15, 2015, issued by the Ministry of Finance.
