Update on Treatment of Non-Public Joint Stock Company Shares
Sept. 29 – The Ministry of Finance has confirmed that shares of non-public joint stock companies will not be treated as securities following Letter 12501/BTC-CST issued on September 20.
Only shares for public joint stock companies will be considered as securities. The latest clarification means that a 25 percent corporate income tax rate will be charged for gains earned by a foreign company not incorporated in the country when they sell shares of a non-public joint stock company.
In comparison, sales proceeds of a public joint stock company will be charged only a 0.1 percent corporate income tax rate.
A 20 percent personal income tax rate will apply for resident individuals selling non-public joint stock companies as opposed to non-residents that will be charged a 0.1 percent tax on sales.
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