Tiếng Việt
中文Quick answer: Tax may be payable. A father giving shares to his child constitutes income from gifts being securities or capital and is subject to personal income tax (PIT). Under Personal Income Tax Law No. 109/2025/QH15 (effective from 01/7/2026, replacing the 2007 PIT Law), PIT on gift income is calculated as the portion of value exceeding VND 20 million per gift multiplied by the 10% tax rate. Note: the father — child relationship is not exempt from tax for gifts being securities or capital contributions.
Current legal framework
- Personal Income Tax Law No. 109/2025/QH15 (effective 01/7/2026), replacing the 2007 PIT Law and amending documents;
- Article 17: PIT on income from inheritance and gifts of resident individuals = taxable income × 10% tax rate; income from gifts being securities or capital in economic organizations remains taxable income — not removed from taxable scope under the new Law.
How tax is calculated when receiving gifted shares
- Taxable threshold: tax is only calculated on the portion of gift value exceeding VND 20 million per gift (the threshold raised from VND 10 million to VND 20 million compared to previous rules);
- Tax rate: 10%;
- Gift value is determined based on the value of the securities or capital at the time of receipt.
Illustrative example: a father gifts shares worth VND 120 million in one gift → taxable income = 120 − 20 = VND 100 million → payable PIT = 100 × 10% = VND 10 million.
Related services
M&A, Equity Transfer and Project Transfer
If you are preparing an equity transfer, M&A transaction, project transfer or restructuring, ANT Legal can help review legal risks and transaction structure.
Cases where gifts are tax-exempt
Clause 1, Article 4 of the 2025 PIT Law exempts income from transfer, inheritance and gifts of real estate between persons with certain blood and marital relationships (spouses; parents — children; grandparents — grandchildren; siblings…). However, the exemption does not apply to gifts being securities or capital contributions — these assets remain subject to PIT as stated above.
Key notes
- In addition to PIT, transferring/re-registering shares also requires registration procedures with the company (shareholder register) and other tax and fee obligations as prescribed;
- The 2025 PIT Law is effective from 01/7/2026; transactions arising before that time apply the old legal framework (the 2007 PIT Law and Circular 111/2013/TT-BTC).
How ANT Legal can help
ANT Legal advises on PIT for transfers and gifts of shares/capital contributions, reviews declaration obligations and represents clients working with tax authorities. For advice on your specific case, please contact our lawyers at 0966.475.966.
