HÃNG LUẬT DHP

ASK

I have sold a private business to another person. Do I have to declare and pay any taxes when the two parties complete the contract?

ANSWER

DHP LAW will answer your questions as follows:

According to the provisions of the Law on Personal Income Tax in 2007 amended in 2012 :

The transfer of your private business can be understood as the transfer of capital, machinery, equipment, production facilities, etc., so it is subject to personal income tax.

Under personal income tax, you must pay taxes on the following types of income:

+ Income from capital transfer: ( Clause 4, Article 3 of the Law on PIT )

“a) Income from the transfer of capital shares in economic organizations;

…”.

+ Income from real estate transfer: ( Clause 5, Article 3 of the Law on PIT ), in case you transfer the head office of the enterprise or enterprise, the place of production, the place of business, trading, …

“a) Income from the transfer of land use rights and properties attached to land;

1. b) Income from transfer of the right to own or use the house;
2. c) Income from transfer of the right to rent land or rent water surface;
3. d) Other incomes received from real estate transfer”.

As such, you will be subject to tax arising from the capital transfer and tax arising from the transfer of real estate in personal income tax.

For support and advice on Business, Investment, Intellectual Property, Tax,… in the best way, please contact us with the following information:
DHP LAW
Address: L4-09.OT06 Landmark 4 Building Vinhomes Central Park, 720A Dien Bien Phu, Ward 22, Binh Thanh District, Ho Chi Minh City