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Stockbrokers offer to pay customers’ taxes
An Binh Securities Co. has announced that it will pay any income tax due on securities investment for its clients during the first quarter of this year.
The brokerage is making the offer to counteract the perceived psychological impact on investors caused by the new Law on Personal Income Tax which, for the first time, subjects dividend income and capital gains from securities trading to taxation.
The new tax law took effect on January 1.
Counting on the tax to have limited real impact on investors, An Binh hoped its offer would help stimulate trading during the current market doldrums.
Nguyen Thanh Hai, head of brokerage and business development department for the firm, said the company would consider whether to continue the offer once the first quarter ends.
Orient Securities Co. recently made a similar but more limited offer. For clients with trading value of up to 5 billion VND (294,000 USD) a month, the brokerage would pay 80 percent of the 0.1 percent transaction fee for each trade, a tax option set forth in the new law in lieu of a net capital gains tax.
John Nolan, a HCM City-based analyst, said such offers demonstrated the increased competitiveness among securities firms in the context of market turmoil. “If you want to increase your market share, you have to create prominent products for your customers. That’s a fact,” said Nolan.
“When we decided to offer this service, we focused on our pledge to customers to come together with them during hard times,” Hai said.
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