In Vietnam capital gains tax on property is levied in two ways, with authorities choosing from between a flat 2 percent tax on the sale value and a 25-percent tax on profit. But the Ministry of Construction has proposed scrapping the 25 percent option, with deputy minister Nguyen Tran Nam saying the other alternative is simpler and prevents tax evasion. In many cases, tax authorities find it difficult to calculate how much a house had cost the seller, he said. Apart from inflation, repair costs and consulting and brokers' fees too are excluded from the book value of a house, meaning sellers suffer losses by paying tax on their apparent profits, he said. In August the Ho Chi Minh City People's Committee had made a similar proposal to the government. Nguyen Thai Son, former chief of the city Taxation Department, had said there should be just one method to calculate the tax. Government accountants and inspectors often "put pressure" on tax agencies to choose the alternative … [Read more...] about Vietnam mulls scrapping 25 pct option for capital gains tax on property
Vietnam capital gains tax
Capital gains tax on stocks may be straw that breaks camel’s back
Some securities companies warn that the capital gains tax proposed to be introduced from January next year is too much too soon considering the gloom on the stock market. The new Personal Income Tax Law requires investors to pay either 0.1 percent of every sale or 20 percent on the year's net profit accumulated throughout the year. Lam Minh Chanh, general director of Dai Viet Securities Company, said the rate was too high in both instances. For instance, businesses with a net profit of below VND60 million(US$3,570) per year pay much less tax, he pointed out. Proprietary businesses pay just 5 percent. … [Read more...] about Capital gains tax on stocks may be straw that breaks camel’s back
Markets rebound on capital gains tax delay
The Ho Chi Minh City and Hanoi markets clawed back some of their losses Friday after the government considered delaying the introduction of a new personal income tax law, originally slated to take effect in the new year. Bloomberg quoted the local media as saying the government may push it back to July 1. Among its provisions is a capital gains tax that would require investors to pay either 0.1 percent of every securities sale or 20 percent of the whole year's profit. The Ho Chi Minh Stock Exchange's VN-Index advanced 11.2 points, or 3.69 percent, to close at 314.74 points, its biggest gain in more than three weeks. … [Read more...] about Markets rebound on capital gains tax delay
New capital gains tax explained
The Personal Income Tax Law, which came into effect on January 1, is being applied to share trading in unlisted companies. The government last year announced it would start collecting tax on share trades to raise revenue. Details of the new tax were only revealed in the final days of last year. Thanh Nien caught up with Tran Thi Le Nga, a senior official from the Ho Chi Minh City Department of Taxation, to find out how the new capital gains tax regulations apply to unlisted share transactions. … [Read more...] about New capital gains tax explained
New law proposes capital gains tax, spooks stock investors
The Ho Chi Minh City stock market edged down on thin volumes Thursday on news that the Personal Income Tax Law with a new capital gains tax will come into effect after all next year. The VN-Index lost 1.86 points, or 0.61 percent, to close at 302.19. Of its members, 58 gained and 83 lost. Trading volume was just 9.3 million, compared with Tuesday's 20.3 million and Wednesday's 12.2 million. The Ministry of Finance had offered two options - delaying the introduction of the law until July 1 next year or implementing the law as originally planned on January 1 but with exemptions for certain sections. The National Assembly's Finance and Budget Committee decided at a meeting in Hanoi Wednesday that the law should not be delayed since it has already been approved by the National Assembly, according to Tuoi Tre newspaper. The new law requires investors to pay either 0.1 percent of every sale or 20 percent on the year's net profit accumulated throughout the year. Son said investors were … [Read more...] about New law proposes capital gains tax, spooks stock investors