The National Taxation Bureau of Northern Area (NTBNA), Ministry of Finance stated that the securities transaction tax shall be collected by the collecting agent on the date of transaction at the required rate and paid to the national treasury on the following day with a filled payment slip. If the securities are transferred directly by the holder, the transferee shall be the collecting agent.
       The NTBNA explained that when a company repurchases issued stock and sells it at a contract price to its employees, it shall pay the securities transaction tax at the rate of 0.3% based on the transaction amount. In this case, the collecting agent should be the employees. If the number of employees who bought the stock is too numerous, in order to simplify the procedure of tax collection, the company could apply for a collective tax return to the regional national taxation bureau of the registered domicile of the employees, then submit the tax return, the copy of tax bill and the details of securities transaction to the regional national taxation bureau.
       The NTBNA would like to remind the public to call the toll-free number 0800-000321 if there are any questions, or directly contact the regional national taxation bureaus, its branches or offices for further information.