When investing, you need to clearly understand the types of fees and taxes associated with stock trading to manage your account balance and securities holdings. Join Anfin in exploring detailed information about these fees and taxes in the article below.
Types of Stock Trading Taxes
Currently, there are two common types of taxes when investors trade stocks.
Income Tax on Selling Shares
When transferring shares to another party, the investor must pay an income tax, which amounts to 0.1% of the sale value of those shares. According to regulations, the income tax is charged to the seller, not the buyer.
Example: An investor wants to sell 1,000 MWG shares (Mobile World Investment Corporation) at 100,000 VND per share, making the total transfer value 100 million VND. The income tax for the seller is calculated as 100 million VND x 0.1% = 100,000 VND.
Income Tax on Receiving Cash Dividends
Cash dividends are the portion shareholders receive from a company based on agreements made during the annual general meeting. The company will distribute all or part of the profit from business activities. This is shareholder income, thus taxable at a rate of 5% on the cash dividend value.
Example: NTC (Nam Tan Uyen Industrial Park JSC) pays a cash dividend at a rate of 50%, equivalent to 5,000 VND per share. If you own 2,000 NTC shares, the total dividend is 2,000 x 5,000 = 10 million VND. The income tax for the investor is 10 million VND x 5% = 500,000 VND.