The bill on personal income tax (PIT) will be open for public referendum in June. Under the bill, earnings from securities trading will be taxed, while interest from bank deposits will still not be the subject to PIT.
The attempt to tax the earnings from securities trading once faced strong opposition from the public. However, the situation has become quite different as the stock market is booming and many investors have made fat profit.
Deputy Minister of Finance Truong Chi Trung said that it proves to be the right time to tax securities trading. Some experts have even said that the proposed tax rates on securities earnings were relatively low.
Mr Trung said that there would be three kinds of securities earnings to be taxed. First, earnings from dividends, or yearly profit from securities will be taxed 5%. Second, investors will have to pay an assignment tax when transferring shares. Third, Vietnam will collect taxes from non-resident foreign investors.
When asked if Vietnam will tax bonus shares (shares issued by listing companies to existing shareholders as a bonus), Mr Trung said that bonus shares were a newly arising problem. The General Department of Taxation will compile documents about the issue.
Taxing interest from bank deposits has been the most ‘sensitive’ problem in the bill and has raised a lot of arguments. MoF has decided that in the first period of the law’s implementation, bank deposit interests will be exempted from PIT. MoF will consider the living standards and average income of people later to decide whether to tax earnings from bank deposits.
Mr Trung said that all the problems were being discussed and the bill’s compilation would be wrapped up after the bill was open for public opinions in June. The bill on PIT is scheduled to be submitted for the National Assembly for consideration by the end of this year.
Source: VNE
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