Official letter No. 32670/CTHN-TTHT dated July 11th, 2022 of the Department of Taxation of Taxation regarding tax policy for capital contribution and receipt thereof

In case a Company receives capital contribution of an individual by value of brand property right and the brand property right is transferred to the company, upon transferring the brand property right, the individual shall not have to declare and pay value added tax (VAT) (clause 21 Article 4 of Circular No. 219/2013/TT-BTC ).

However, when the individual receives income from contribution of capital by the brand property right, he/she has to declare and pay personal income tax (PIT) in terms of income from capital investment at the tax rate of 5% (Article 10 of Circular No. 111/2013/TT-BTC ).

In case the Company receives a new capital contributor, if the asset after the capital contribution is determined the Company's ownership and is added to business capital source, it shall have to declare and pay enterprise income tax (EIT) (Article 5 of Circular No. 96/2015/TT-BTC ).

The valuation of contributed assets shall be carried out according to Article 16 of 2020 Law on Enterprises.

In case the contributed assets are determined intangible fixed assets according to the regulations at Article 3 of Circular No. 45/2013/TT-BTC , the Company shall make depreciation account of the intangible fixed assets.