|
VASB proposes to delay plan on taxing earnings from securities trading
The Vietnam Association of Securities Business (VASB) has lodged a proposal to the National Assembly’s Steering Committee and relevant ministries on delaying the taxation on individual earnings from securities trading.
According to Nguyen Thanh Ky, Secretary General of VASB, the proposal has been made after collecting public opinions at a seminar held by VASB, which gathered nearly 100 representatives. VASB is the organization representing 100 members, and the voice of over 200,000 investors.
According to VASB, the Government should not impose capital gains tax right at this moment. This is for the first time VASB sent the official document relating to the issue. VASB asserted that it is legal and necessary to tax on the earnings from securities trading, however, it is still necessary to reconsider the time to tax and the method of taxing.
Explaining the proposal, Mr Ky said that Vietnam’s stock market now is fledgling, which has attracted 0.26% of total population only.
Most securities investors are in Hanoi, HCM City and Hai Phong. This is a kind of worrisome business, not so easy as making deposits at banks, which can bring stable interests. Meanwhile, bank depositors do not have to pay personal income tax.
The taxation is believed to be carried out on the securities investors on trading floors, while state agencies will not be able to tax on the transactions on flea markets.
Therefore, according to Mr Ky, it would be unfair to tax on securities investors now, and the unfair taxation would lead investors to leave trading floors, thus hindering the development of the stock market.
“It is necessary to delay the taxation on securities assignment deals until the payments via banks can replace the payments in cash,” VASB stated.
Meanwhile, Nguyen Hoang Hai, Secretary General of the Vietnam Association of Finance Investors (VAFI), said that two methods of tax calculation would be accepted: either 0.1% on the total transaction value, or 25% on profit.
“I think that the 0.1% level is acceptable for the investors with few transactions, while the rate would be high for investors who make regular transactions,” he said.
According to Mr Hai, the biggest problem now is the tax to be imposed on dividends. The compiling committee has denied the fact that this is a kind of overlapping taxation (investors have to pay corporate income tax for their earnings already, and they also have to pay personal income tax for the same earnings). “This is a wrong viewpoint,” Mr Hai stated.
VTC
|
