The Ministry of Finance has proposed a 20% tax on income from securities.
In cases where the purchase price and associated costs cannot be determined, the tax will be set at 0.1% of the securities’ sale price.
For stake transfer, the ministry is eyeing a 20% tax on taxable income and 2 if the purchase price and costs cannot be determined.
Currently there is a flat 0.1% tax on stock transactions irrespective of profit or loss.
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Investors look at stock price son a tablet at a brokerage in HCMC in 2024. Photo by VnExpress/An Khuong |
Experts have repeatedly called on authorities to tax only profits.
The ministry explained that the proposed changes are driven by practical experiences, recent trends and international practices.
Most countries tax income from stake and securities sales, though methods differ.
Some apply a percentage on the stake sale price, others on income and some distinguish between listed and unlisted securities.
For instance, Indonesia imposes a 0.1% withholding tax on stock market transactions, the Philippines levies a 0.6% tax on transaction value and Japan has a 20.3% rate on income from selling certain securities such as stocks and bonds with warrants.
China imposes a 20% tax on income from selling unlisted securities, while Thailand taxes stock income similarly to ordinary income.
