HÃNG LUẬT DHP

According to Official Letter No. 11133/BTC-CST dated August 21, 2017 of the Ministry of Finance on tax policy for income from the transfer of futures contracts on the derivative securities market.

The official dispatch provides guidance on determining VAT, CIT and PIT when transferring futures contracts on the derivatives market. Pursuant to Points d and g, Clause 8, Article 4 of Circular 219/2013/TT-BTC, the transfer of futures contracts on the derivatives market is exempt from VAT.

However, you must declare and pay CIT. If the transferor is a domestic enterprise, it shall pay CIT according to Clause 1, Article 7 and Clause 2, Article 15 of Circular 78/2014/TT-BTC. If you are a foreign contractor, you must pay CIT at the rate of 0.1% of the transfer price each time according to Clause 2, Article 13 of Circular 103/2014/TT-BTC.

In case the transferor is an individual, whether resident or non-resident, he/she must pay PIT at the rate of 0.1% of the transfer price each time according to Clause 2, Article 11 of Circular 111/2013/TT-BTC.

“Transfer price each time” is determined by the settlement price of futures contract at the time of determining taxable income x Contract multiplier x Number of contracts x initial margin ratio divided (:) 2.

The time of determining taxable income is the time of matching buy/sell orders of futures contracts on the trading system of the Stock Exchange or the time of maturity of futures contracts.

Clearing members where foreign individuals or contractors open escrow accounts are responsible for withholding tax before paying money to foreign individuals or contractors.

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