Income from securities could get tax waiver

To revive the stock market, the Ministry of Finance has recommended waiver of tax on income from securities this year, reported Dau Tu Chung Khoan (Securities Investment).

They now pay a 5 percent tax on dividends and a 0.1 percent flat tax on transactions.

Deputy Minister of Finance Do Hoang Anh Tuan said the recommendation is in light of the fact that the securities market has been on a downtrend since the beginning of this year.

The 10 percent-plus fall in the VN-Index in the first quarter caused many investors, especially securities companies, to suffer losses.

Generally, income from securities was negligible, he said.

Besides, it is unfair to tax dividend earnings but not interest paid on bank savings accounts, and this also dissuades investors from buying stocks, he said.

A detailed personal income tax exemption scheme would be submitted to the government for approval during the monthly Cabinet meeting next month, he added. – Tuoitre

Posted by VBN on May 1 2011. Filed under Stock. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry