Exemption from personal income tax from transfer of shares and contributed capital

The Lao Dong Newspaper Legal Consulting Office replied:

Clause 1, Article 8, Decree 20/2026/ND-CP detailing and guiding the implementation of a number of articles of Resolution No. 198/2025/QH15 dated May 17, 2025 of the National Assembly on a number of special mechanisms and policies for private economic development (effective from January 15, 2026) stipulates the exemption and reduction of personal income tax as follows:

1. Individuals with income from transferring shares, contributed capital, right to contribute capital, right to buy shares, right to buy capital contributed to creative startups are exempt from personal income tax for this income.

Income from transferring shares, contributed capital, right to contribute capital, right to buy shares, right to buy capital contributions specified in this clause is income obtained from transferring part or all shares, contributed capital, right to contribute capital, right to buy shares, right to buy capital contributions to creative start-up enterprises (including the case of selling enterprises), except for income from transferring shares, right to buy shares of public companies, listed organizations, registering for transactions according to the provisions of the law on securities.

In case of selling all enterprises owned by individuals in the form of transferring capital associated with real estate, personal income tax shall be declared and paid according to real estate transfer activities.

Thus, from January 15, 2026, people with income from share transfers and capital contributions to innovative startups are exempt from personal income tax.

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