Ms. N.T.T.H in Lao Cai reflected that she has worked at a two-member LLC or more, operating stably since 2002 until now.
In September 2025, members contributed capital to propose reducing charter capital to refund a part of the contributed capital for each member, at a rate of 45% of the contributed capital. The amount of refunds to members does not correspond to a difference compared to the original capital contribution value.
Ms. H asked, when the company returns the above capital contributions to members, will the members have to pay personal income tax or not?
If there is a personal income tax obligation, what regulations will be applied to the declaration? In case of having to declare personal income tax, can the company declare on behalf of the individuals?
On this issue, Lao Cai Provincial Tax Department has the following opinion:
In case of partial refund of contributed capital, if the contributed capital is increased compared to the original capital contribution value, it is subject to personal income tax on income from capital investment. The additional part of the capital contribution value received is determined to be taxable income.
In case of having to pay personal income tax on income from capital investment, the tax calculation method, the time of determining taxable income, the deadline for submitting tax declaration documents, tax declaration documents, tax payment on behalf of others shall be implemented according to the provisions cited above. Taxpayers are responsible before the law for the accuracy of determining the value of the capital contribution refund.
