According to Article 7 of Circular No. 98/2020/TT-BTC, a private fund may distribute profits to its members (securities investors) by profits earned in the period or accumulated profits after the fund has fulfilled its tax liabilities and other financial obligations as prescribed by law.
The investors shall not pay enterprise income tax on the incomes earned from capital contribution to the private fund after the fund has paid tax (clause 6 Article 8 of Circular No. 78/2014/TT-BTC).
With regard to individual investors who receive profits in cash from investment in the private fund, they shall declare and pay PIT on incomes from capital investment at the tax rate of 5%.
Forms of tax declaration dossiers shall be carried out according to the regulations at Circular No. 80/2021/TT-BTC.