Taxes applied to share acquisition transaction in a joint-stock company in Vietnam
Acquiring shares in a Vietnam-owned company is one of the most-chosen forms of investment in Vietnam. In general, tax implications of the share acquisition are different from the one of newly set up a foreign-invested enterprise in Vietnam. Typically, a foreign investor (the “ Investor ”) may acquire shares in a joint-stock company in Vietnam (the “ Target Company ”) by either (i) purchasing shares from the existing shareholders (the “ Seller ”) of the Target Company or (ii) subscribing new shares that are privately issued and allotted by the Target Company to the Investor or (iii) the combination of the said methods. Subject to the type of the share acquisition transaction, the taxes applied may be diverse. Share transfer If the share acquisition transaction is conducted in the manner of transferring shares from the Seller to the Investor, the Investor is not required to pay any tax to Vietnamese authorities. Transferring shares in a joint-stock company is considered as a transfer o