Official Dispatch No. 194/TCT-DNNCN 2025 on Personal Income Tax Policy

To: Phu Yen Tax Department

The General Department of Taxation has received Official Letter No. 3217/CTPHY-NVDTPC dated October 29, 2024, from the Phu Yen Tax Department, requesting guidance on determining the book value of contributed capital in a limited liability company for personal income tax calculation. Regarding this matter, the General Department of Taxation provides the following opinion:

Based on Point b, Clause 1, Article 16 of Circular No. 111/2013/TT-BTC dated August 15, 2013; Sections 18 and 29 of Accounting Standard No. 01 – General Accounting Standards, issued and published under Decision No. 165/2002/QĐ-BTC dated December 31, 2002, by the Minister of Finance; and Clauses 27 and 34, Article 4 of the Enterprise Law No. 59/2020/QH14 dated June 17, 2020, the taxable income for personal income tax from the inheritance of contributed capital in a limited liability company (with two or more members) is determined based on the book value recorded in the company's balance sheet at the latest balance sheet date according to accounting regulations before the registration of capital ownership. The book value of contributed capital in the company’s balance sheet is calculated as the difference between total assets and total liabilities, using the formula: (code 100 + code 200 - code 300)

The General Department of Taxation provides this response for the Phu Yen Tax Department’s information.

View details here.