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INSTRUCTION ON TAX OBLIGATION FOR SHARE PREMIUM
On June 17, 2025, the General Department of Taxation (“GDT”) issued Instruction No. 18574 GDT to clarify concerns about the fulfillment of income tax obligations related to share premiums, which are the amounts received in excess of the par value of shares during capital increases.
Share premiums are capital additions or contributions by shareholders to the enterprise capital, which are not subject to taxable income.
However, if the enterprise lacks proper supporting documents and has not properly recorded in the accounting books, any increase in the owner's equity account will be treated as taxable income under income tax provisions.
