Vietnam Clarifies Taxation of Gains on Capital Transfers

Vietnam's Department of Taxation of Hanoi city has issued Official letter No. 69382/CT-TTHT of 4 September 2019, which clarifies the taxation of gains resulting from the transfer of capital in a Vietnam company by a non-resident company, including from the sale of a business.

The letter clarifies that such gains are subject to corporate income tax (CIT) in Vietnam as other business income. The gain (taxable income) is determined as the transfer (sales) price, less the acquisition price of th…