- Tax on income from transfer of listed securities on exchanges
- Tax on income from transfer of unlisted shares or capital contributions
Understanding stock selling tax is a key factor helping Vietnamese investors optimize profits and comply with legal regulations. This article analyzes in detail the current tax regulations, how to calculate taxes and tax optimization strategies when trading stocks on the Vietnamese stock market in 2025.
Overview of Stock Selling Taxation in Vietnam in 2025
Stock selling tax is an important aspect that every Vietnamese investor needs to understand thoroughly. When participating in the stock market, understanding tax regulations not only helps you comply with the law but can also optimize your investment strategy. In Vietnam, regulations on stock transaction taxes have changed significantly in recent years, especially after the new tax policy adjustments that took effect from 2021.
Many investors often ask the question “”do you have to pay taxes when selling stocks?”” and the answer is yes. According to current personal income tax laws, when you sell stocks and make a profit, you will have to pay personal income tax (PIT) on that profit. However, the tax calculation method and tax rates may vary depending on the type of transaction and the investor’s status.
Pocket Option company – a leading financial service provider – understands that mastering stock selling tax regulations can help investors avoid unnecessary risks and maximize investment returns. Therefore, we have compiled a comprehensive learn on stock selling taxes in Vietnam, updated according to the latest regulations of 2025.
Legal Basis for Stock Transaction Taxation in Vietnam
To understand stock selling taxes clearly, we first need to grasp the legal basis governing this issue. In Vietnam, taxation on stock trading activities is mainly regulated by the Personal Income Tax Law No. 04/2007/QH12 (as amended and supplemented) and its implementing documents.
| Legal Document | Main Content Related to Stock Selling Tax |
|---|---|
| Personal Income Tax Law No. 04/2007/QH12 | Basic regulations on taxable subjects, taxable income, and tax rates |
| Decree 65/2013/ND-CP | Detailed guidance on some articles of the PIT Law |
| Circular 111/2013/TT-BTC | Implementation guidance for the PIT Law |
| Decree 126/2020/ND-CP | Regulations on tax administration |
| Circular 100/2021/TT-BTC | Latest updates on securities taxation |
According to current regulations, do stock transactions require PIT payment? The answer is yes, sellers of stocks are responsible for paying PIT on income from securities transfer activities. However, it is important to distinguish between two different forms of tax calculation for stock transactions:
Applying the correct tax regulations not only helps investors avoid legal risks but also forms the basis for building an effective trading strategy. Pocket Option always encourages investors to regularly update changes in tax policies to be able to adjust their investment plans accordingly.
How to Calculate Tax When Selling Stocks in Vietnam
Tax Calculation for Listed Stocks
When you execute a transaction to sell stocks listed on Vietnamese stock exchanges such as HOSE, HNX, or UPCoM, the method for calculating taxes when selling stocks will be applied through withholding at source with a tax rate of 0.1% on the total transaction value, regardless of whether you profit or lose in that transaction.
| Calculation Method | Formula | Example |
|---|---|---|
| 0.1% tax rate on total transaction value | PIT = Selling transaction value × 0.1% | Selling 1,000 shares at 50,000 VND/shareTax = 50,000,000 × 0.1% = 50,000 VND |
This is a simple method and is automatically withheld by the securities company when you execute a sell transaction. This means you don’t need to self-declare and pay taxes for listed stock transactions.
Tax Calculation for Unlisted Stocks
For transactions transferring shares in unlisted companies, stock selling tax is calculated using a different method. According to current regulations, the tax rate is 20% calculated on taxable income, which is the difference between selling price and purchase price (actual profit).
| Calculation Method | Formula | Example |
|---|---|---|
| 20% tax rate on taxable income | PIT = (Selling price – Purchase price) × 20% | Buying 1,000 shares at 40,000 VND/share, selling at 60,000 VND/shareTax = (60,000,000 – 40,000,000) × 20% = 4,000,000 VND |
In this case, investors need to self-declare and pay taxes to the tax authority. Having complete documentation of the original purchase price is very important to accurately determine the tax amount payable.
If the purchase price cannot be determined, the tax authority will apply 20% on the total transfer value, which can lead to a much higher tax amount than actual if you have complete documentation.
Special Cases in Stock Selling Tax Calculation
In addition to the basic regulations on stock selling tax, there are many special cases that investors should note. These cases can change the tax calculation method or the amount of tax payable.
Bonus Stocks and Stock Dividends
When receiving bonus stocks or stock dividends, you will not have to pay taxes at the time of receipt. However, when selling these stocks, the method for calculating taxes when selling stocks will be applied as follows:
- For listed stocks: Still applying the 0.1% tax rate on the total transaction value
- For unlisted stocks: The cost basis of bonus stocks and stock dividends is considered 0 dong when calculating tax on income
| Type of Stock | Cost Basis for Tax Calculation | Notes |
|---|---|---|
| Regular purchased stocks | Actual purchase price | Verification documents needed |
| Bonus stocks | 0 dong | The entire selling price will be taxable income |
| Stock dividends | 0 dong | The entire selling price will be taxable income |
| Stocks from equitization | Actual purchase price from the company | Special regulations apply |
When trading on platforms like Pocket Option, tracking the origin of stocks and accurate cost basis becomes easier, helping you have a basis for calculating taxes accurately and optimally.
Tax Optimization Strategies for Stock Investors
Although do you have to pay taxes when selling stocks is a question that has a clear answer, investors can still apply some legal strategies to optimize their tax obligations. These are completely legal methods that professional investors often apply.
- Consider the timing of stock sales
- Offsetting gains and losses (in specific cases)
- Long-term investment to reduce transaction frequency
- Utilizing tax exemption and reduction mechanisms according to regulations
| Strategy | Application | Potential Benefits |
|---|---|---|
| Long-term investment | Hold stocks for a long time, limit trading | Reduce total 0.1% tax payable by limiting the number of transactions |
| Investment portfolio allocation | Diversify investment asset types | Optimize tax obligations according to the characteristics of each asset type |
| Investing through ETF funds | Buying and selling ETF fund certificates instead of individual stocks | Reduce the number of transactions, thereby reducing taxes payable |
| Using retirement investment accounts | Investing through voluntary retirement programs | Enjoying tax benefits in some cases |
The Pocket Option platform provides many analysis tools and investment portfolio tracking, helping investors build effective tax optimization strategies. By planning detailed investments, you can significantly reduce your tax obligations while still achieving your financial goals.
Comparing Stock Selling Taxes in Vietnam with Other Countries in the Region
To have a more comprehensive view of stock selling tax in Vietnam, let’s compare it with countries in the Southeast Asian region. Understanding these differences can help investors have a more panoramic view of the investment environment.
| Country | Tax on Listed Stocks | Tax on Unlisted Stocks | Notes |
|---|---|---|---|
| Vietnam | 0.1% on transaction value | 20% on profit | No offsetting gains and losses with listed stocks |
| Singapore | 0% (no capital gains tax) | 0% (no capital gains tax) | Has stamp duty of 0.2% when buying |
| Thailand | 0% for Thai individuals on SET stocks | 15% on profit | Has transaction tax of 0.1% |
| Malaysia | 0% (no capital gains tax) | 0% (no capital gains tax) | Has stamp duty of 0.1% on transfer |
| Indonesia | 0.1% on transaction value | 5% on transaction value (individuals) | Additional 0.5% tax for founding shareholders |
From the comparison above, it can be seen that the stock selling tax rate in Vietnam for listed stocks (0.1%) is relatively competitive compared to countries in the region. However, the tax on profits from unlisted stocks (20%) is higher than many neighboring countries.
As an international financial service provider, Pocket Option helps Vietnamese investors access different markets, thereby diversifying their investment portfolios and taking advantage of tax benefits in each market.
Declaring and Paying Stock Selling Taxes: Implementation Process
Tax declaration and payment is one of the important factors that investors need to understand clearly when participating in the stock market. This process will differ depending on the type of transaction you execute.
For Listed Stocks
The question “”do stock transactions require PIT payment”” for listed stocks has a simple answer: yes, but you don’t need to self-declare. The process is as follows:
- The securities company will automatically withhold 0.1% of the selling transaction value
- This tax is withheld at source and paid to the state budget
- Investors do not need to declare or pay any additional taxes
- At the end of the year, the securities company will provide tax withholding documents if you request
This is a simple and automatic process, helping investors save time and effort in complying with tax obligations.
For Unlisted Stocks
For unlisted stock transactions or capital contribution transfers, the process is much more complex:
| Step | Action | Deadline |
|---|---|---|
| 1 | Collect complete transaction documents (sales contract, payment documents) | Immediately after completing the transaction |
| 2 | Declare personal income tax (form 05/TNCN) | 10 days from when the tax obligation arises |
| 3 | Submit the declaration and related documents to the local tax authority | 10 days from when the tax obligation arises |
| 4 | Pay taxes according to the tax authority’s notification | According to the deadline in the tax notice |
| 5 | Store tax payment documents | Minimum 5 years |
Complying with the correct process and tax payment deadlines not only helps you avoid penalties and late payment fees but also builds a transparent tax record, which is very important if you participate in various investment activities.
Pocket Option’s expert consultants can support investors in the process of understanding and complying with tax regulations, helping you be more confident when participating in the Vietnamese stock market.
Common Mistakes About Stock Selling Taxes That Investors Should Avoid
Many investors, especially beginners, often make some mistakes when dealing with tax issues. Understanding these mistakes will help you avoid unnecessary risks and optimize your tax obligations.
| Mistake | Explanation | Solution |
|---|---|---|
| Not understanding tax obligations clearly | Many investors don’t know exactly do you have to pay taxes when selling stocks, leading to unintentional violations | Research tax regulations thoroughly before investing, consult experts |
| Not keeping transaction documents | Lacking original purchase documents when selling unlisted stocks | Store all transaction documents systematically |
| Not declaring on time | Missing tax declaration deadlines for unlisted stock transactions | Remember and strictly comply with declaration deadlines |
| Calculating taxes incorrectly | Applying the wrong method for calculating taxes when selling stocks, especially with bonus stocks | Use tax calculation tools or consult experts |
| Evading tax obligations | Intentionally not declaring or declaring incorrectly to avoid taxes | Understand legal consequences and comply with tax regulations |
One of the most serious mistakes is intentionally evading tax obligations, which can lead to heavy administrative penalties, and even criminal prosecution in serious cases.
When using Pocket Option’s services, investors are provided with modern investment portfolio management tools, helping to accurately track transactions and have reliable databases to calculate tax obligations accurately.
Trends in Tax Policy Changes and Impact on Vietnam’s Stock Market
Stock selling tax policy in Vietnam has undergone many changes in recent years and may continue to change in the future. Grasping these trends helps investors adjust their investment strategies accordingly.
- Trend towards simplifying tax declaration procedures
- Potential application of technology in tax management
- Changes in tax rates to align with market development strategy
- Strengthening information linkage between management agencies
Experts predict that in the near future, Vietnam may adjust tax policies to encourage long-term investment and limit short-term speculation. This could lead to the application of different tax rates for short-term and long-term transactions, similar to the model of some developed countries.
The development of blockchain technology and cryptocurrencies may also lead to changes in tax policies for new investment assets, requiring investors to continuously update knowledge and adjust strategies.
Pocket Option always updates changes in tax policies and legal regulations, providing timely information to investors through newsletters, analytical reports, and in-depth consultation.
Conclusion on Stock Selling Tax in Vietnam
Understanding stock selling tax is an important factor helping Vietnamese investors build effective investment strategies and comply with the law. Through this article, we have seen that the tax system for stock transactions in Vietnam has its own characteristics, requiring understanding and attention from investors.
The important point to remember is do you have to pay taxes when selling stocks – the answer is yes, with a rate of 0.1% of transaction value for listed stocks and 20% of profit for unlisted stocks. The method for calculating taxes when selling stocks also differs depending on the type of transaction, with listed stocks being withheld at source while unlisted stocks require investors to self-declare and pay taxes.
To legally optimize tax obligations, investors should:
- Keep complete transaction documents
- Regularly update changes in tax policies
- Build investment strategies taking into account tax factors
- Consult experts when necessary
With support from professional trading platforms like Pocket Option, investors can easily track investment portfolios, manage transactions, and have reliable databases for tax calculation and declaration.
Finally, serious compliance with stock selling tax regulations not only helps you avoid legal risks but also contributes to building a transparent and healthy stock market in Vietnam, bringing long-term benefits to all investors.
FAQ
What is stock selling tax and what is the current tax rate in Vietnam?
Stock selling tax is a personal income tax applied when investors sell stocks and earn income from that transaction. In Vietnam, the current tax rate is 0.1% of the total transaction value for listed stocks (withheld at source) and 20% on profits for unlisted stocks (investors must self-declare).
Is tax applied when selling stocks and who is responsible for paying the tax?
Yes, selling stocks in Vietnam creates a tax obligation. For listed stocks, the securities company automatically withholds a 0.1% tax on the transaction value and pays it on behalf of the investor. For unlisted stocks, investors are responsible for self-declaring and paying a 20% tax on profits.
How is tax calculated when selling bonus stocks or stock dividends?
For listed stocks, tax is still calculated as 0.1% of the total transaction value, regardless of the stock's origin. For unlisted stocks, bonus stocks and stock dividends are considered to have a cost basis of 0 VND when calculating tax, meaning the entire selling price will be considered as taxable income at the 20% rate.
Are there any legal ways to optimize taxes when selling stocks?
There are several legal ways to optimize taxes when trading stocks, such as: long-term investing to reduce transaction frequency and tax payments; diversifying investment portfolios; using ETFs instead of trading individual stocks; and investing through tax-advantaged retirement programs. Pocket Option provides tools to help investors build effective tax optimization strategies.
How does Vietnam's stock selling tax compare to other countries in the region?
Compared to other Southeast Asian countries, Vietnam's 0.1% tax rate for listed stocks is relatively competitive. Some countries like Singapore and Malaysia have no capital gains tax but do have stamp duties on transactions. Thailand exempts Thai individuals from tax on stocks listed on the SET. However, Vietnam's 20% tax on profits from unlisted stocks is higher than in many neighboring countries.