Circular No. 72/2006/TT-BTC amends and supplements Circular No. 100/2004/TT-BTC dated October 20, 2004 of the Ministry of Finance guiding value-added tax and corporate income tax for the securities sector.

 CIRCULAR

Amending and supplementing Circular No. 100/2004/TT-BTC dated October 20, 2004 of the Ministry of Finance guiding value-added tax and corporate income tax for the securities sector

The Ministry of Finance amends and supplements certain contents of Circular No. 100/2004/TT-BTC dated October 20, 2004 of the Ministry of Finance guiding value-added tax and corporate income tax for the securities sector as follows: joint,

Replacing Clause 2.2, Point 2, Section III, Circular No. 100/2004/TT-BTC as follows:

____________________ 

"2.2. Other organizations,

including foreign investment funds, foreign organizations established under foreign laws without legal person status in Vietnam but having opened securities investment accounts in Vietnam, organizations established and operating under Vietnamese law (except securities companies, fund management companies, and organizations mentioned in Clause 2.1, Point 2, Section III of Circular No. 100/2004/TT-BTC) shall pay corporate income tax on a fixed basis as follows:

a) Fixed rate:

- For the transfer of securities (stocks, fund certificates, bonds, except bonds exempted from tax), the amount of tax payable is determined at 0.1% of the total value of securities sold at the time of transfer.

1. - For bond interest (except bonds exempted from tax), the amount of tax payable is determined at 0.1% of the total value of bonds (including the face value recorded on the bond and the interest received) at the time of receiving interest.

Income from investing in stocks and fund certificates that have already been subject to corporate income tax shall not be subject to corporate income tax again. b) Declaration and payment of fixed tax:

- For listed securities: the securities company is responsible for withholding the corporate income tax and declaring on behalf of the investor organization (according to Form KT/CK issued together with this circular), paying and settling the tax according to the guidance in Point 3 of this circular.

- For unlisted securities:

In cases where the securities company is authorized to manage the entire list of investors and carry out transfer procedures between investors, the withholding of tax and declaration, payment, and settlement of tax will be carried out similarly to the case of listed securities.

In cases where the securities company is not authorized to manage the list of investors, manage the transfer of securities, or is only authorized to manage a part of the list of investors for registration of transfers and dividend payments (in cases where investors are outside or far from the company), the declaration and payment of tax will be carried out as follows:

For foreign investment funds and foreign organizations without legal person status in Vietnam that only open accounts in Vietnam for securities investment,

the place where the foreign investment fund or foreign investment organization opens its securities investment account is responsible for withholding corporate income tax and declaring on behalf of the investment organization (according to the form issued together with this circular), paying and settling taxes with the tax authority according to the guidance in Point 3 of this circular. For domestic organizations, joint-stock companies, fund management companies, organizations paying bond interest

are responsible for withholding tax and declaring on behalf of the investment organization (according to the form issued together with this circular), paying and settling taxes according to the guidance in Point 3 of this circular."

Replacing the last paragraph of Point 2, Section III of Circular No. 100/2004/TT-BTC with new Clause 2.3 as follows:

In cases where investment organizations mentioned in Clause 2.1, Point 2, Section III of Circular No. 100/2004/TT-BTC and Clause 2.2, Point 1 of this circular invest in securities through a Securities Investment Fund, they shall pay corporate income tax according to the guidance in Point 3, Section III, Circular No. 100/2004/TT-BTC."

Replacing Point 1 and Point 2, Section IV of Circular No. 100/2004/TT-BTC as follows: commercial banks "1. Registration, declaration, payment, settlement of tax and handling of violations related to tax for organizations and individuals operating in the securities sector shall be implemented according to the current regulations of the law on value-added tax and corporate income tax. For domestic organizations, joint-stock companies, fund management companies, In addition to fulfilling tax obligations as prescribed, securities companies, fund management companies, joint-stock companies,

commercial banks, organizations paying bond interest must also withhold tax, declare to the directly managing tax authority (according to the form issued together with this circular) and pay tax to the State Treasury on behalf of the investment organization. The declaration, payment, and settlement of tax shall be completed within 30 days from the date of occurrence of taxable income of the investment organization. 2. Securities companies, fund management companies, joint-stock companies, commercial banks, organizations paying bond interest For domestic organizations, joint-stock companies, fund management companies, shall implement the withholding of tax from investment organizations and declare and pay tax on behalf of investors who benefit from a fee of 0.8% calculated based on the actual tax collected, with a maximum of VND 50 million per declaration and tax payment. This fee amount is deducted from the tax revenue before it is paid into the State Budget and is used to cover expenses for tax collection and payment, and to reward individuals involved in tax collection and payment."

2. Replacing "Form No. 01" issued together with Circular No. 100/2004/TT-BTC with "

"2.3. " issued together with this circular.

3. This circular takes effect 15 days after its publication in the Official Gazette.

Cases of transferring bonds and receiving bond interest prior to the effective date of this circular shall be implemented according to the relevant legal provisions applicable at the time of transfer or receipt of interest.

During the implementation process, if there are any difficulties, units are advised to promptly report to the Ministry of Finance for supplementary guidance. - Central Committee Office and Party Committees; - National Assembly Office; shall also perform tax withholding, declare to the directly managing tax authority (as issued together with this Circular), and pay the tax to the State Treasury on behalf of the investment organization. The declaration, payment, and settlement of tax shall be completed within thirty days from the date of occurrence of the taxable income of the investment organization. For domestic organizations, joint-stock companies, fund management companies, 2. Securities companies, fund management companies for securities investments, joint-stock companies,

commercial banks, organizations paying bond interestshall implement tax withholding from the investment organization and declare and pay the tax on behalf of the investors entitled to a fee equal to 0.8% of the actual tax collected, with a maximum not exceeding fifty million dong per declaration and tax payment. This fee amount shall be deducted from the tax revenue before it is paid into the State Budget and shall be used to cover costs related to the collection and payment of taxes, and to reward individuals involved in the tax collection and payment process. Replace "Form No. 01" issued together with Circular No. 100/2004/TT-BTC with

4. issued together with this Circular.For domestic organizations, joint-stock companies, fund management companies,This Circular takes effect fifteen days after its publication in the Official Gazette.

5. In cases of bond transfers and receipt of bond interest prior to the effective date of this Circular, they shall be implemented according to the relevant legal provisions applicable at the time of transfer or receipt of interest.

During implementation, if there are any difficulties, units are requested to promptly report them to the Ministry of Finance for further guidance and supplementary instructions./.

- Central Party Office and Party Committees; - National Assembly Office;