Investment Taxes: How Are Securities, Dividends, and Deposit Interest Taxed?

When you start investing, one question often gets forgotten until... you receive your statement: "Do I have to pay taxes on investment gains, and how much?" The answer varies by asset type — and there are a few surprises for beginners. This article clarifies the three most common sources of individual investment income.

1. Bank Deposit Interest — Good News for Savers

This is what surprises many people: interest from individual savings deposits at banks is exempt from personal income tax. You receive the full interest amount, with no tax withheld on that interest income.

This is one reason savings deposits are attractive for safety-oriented goals — but don't forget that deposit interest rates typically only slightly exceed inflation, making this more of a capital preservation channel than a long-term growth vehicle (see the Investment series).

Note: the tax exemption applies to individual deposit interest at credit institutions; other forms of "deposits" or lending may have different tax treatments.

2. Securities Transfers — Tax on Sale Price, Not Profit

This is the most commonly misunderstood point. For listed securities, personal income tax on transfers is typically calculated as a percentage of the transfer value (sale price), not the profit portion.

Important consequence: you may have to pay this tax even when that trade results in a loss, because tax is calculated on the sale price rather than the gain/loss difference. This tax is usually automatically withheld by securities companies when you sell, so many people don't notice it.

Practical implication: the more you trade, the larger the accumulated tax on sale prices — another reason to invest long-term rather than constantly day-trade.

3. Dividends — Income from Capital Investment

When companies distribute cash dividends to shareholders, this amount is considered income from capital investment and subject to personal income tax at a certain rate, typically withheld at the time of payment. Stock dividends also have their own tax treatment according to regulations.

Summary Table

Things Investors Should Remember

• Tax on sale price encourages long-term holding: each sale triggers tax on transaction value, so a buy-and-hold strategy both leverages compound returns and saves on taxes and fees.
• Open-ended funds and ETFs have separate tax mechanisms: when investing through fund certificates, the tax calculation when selling fund certificates back may differ from direct stock trading — learn the details from the issuing institution.
• Keep transaction documents: necessary for filing, settlement, or reconciliation.
• Foreign investments, digital assets: have separate tax regulations that are being refined — stay updated and file correctly.

Important: The new Personal Income Tax Law (2025) along with implementing decrees and circulars may adjust the determination method and tax rates for certain types of investment income (especially capital and securities transfers). This article presents general principles; please check current regulations and tax rates, or consult a tax professional before making decisions.

Want to clearly understand tax obligations for your investment portfolio? Ask [Sirifin's AI advisor](/vi/ai-advisor), or [schedule an appointment with a tax professional](/vi/advisors).

Content is for informational and financial education purposes, not tax or investment advice for specific situations.