The Ministry of Finance has submitted a draft proposal to the Government members, seeking their input on several amendments and explanations regarding the revised Personal Income Tax Law. This proposal is set to be reported to the National Assembly’s Standing Committee.
The review committee suggests the Government carefully consider the taxation of gold bar transfers to avoid inconveniencing individuals who engage in such transactions for non-speculative or non-business purposes.
The drafting agency is also urged to study appropriate tax rates and application methods, clearly distinguishing between short-term gold investment and long-term gold storage. This ensures the goal of controlling speculation and promoting a healthy gold market is achieved.
The Government will determine the timing of tax implementation and the threshold value of gold bars subject to taxation based on gold market management conditions.
In the draft report to the National Assembly’s Standing Committee, the Government has accepted feedback from National Assembly delegates. They have directed the drafting agency to thoroughly review relevant legal provisions, international practices, and current gold market management conditions to refine this regulation in the draft Law.
This ensures compliance with the Party and State leadership’s requirements for gold market management while providing a feasible roadmap for implementation and gaining consensus from affected stakeholders.
The draft Law authorizes the Government to determine the timing of tax implementation, the threshold value of gold bars subject to taxation, and tax rate adjustments based on the gold market management roadmap. Personal income tax on gold bar transfers will be levied at 0.1% of the transfer value per transaction.
Empowering the Government to specify the threshold value of gold bars subject to taxation aims to exclude individuals who buy or sell gold for savings or storage purposes (not for business). This aligns with the current custom of gold accumulation among a segment of the population.
This provision also ensures the Government has the legal basis to decide on tax collection and specific details such as tax thresholds and rate adjustments when gold market management conditions meet the requirements for tax collection and administration.
Additionally, as this is a new regulation with a broad impact, the draft Law’s approach is a necessary step to safeguard economic stability. It aligns with the Party and State’s directives on tightly managing gold trading activities, curbing gold speculation, and channeling societal resources into the economy.
Gold Bullion Transaction Tax: Who Will Bear the Burden?
Navigating the tax threshold for gold bullion transactions can be complex, particularly when aiming to exempt small-scale buyers and sellers. Determining this threshold presents its own set of challenges.
Finance Ministry Proposes Tax Rate Revisions: Good News for Earners Between $430 – $2,600 Monthly
The Ministry of Finance has proposed a significant tax reduction, lowering the tax rate from 15% to 10% for bracket 2 and from 25% to 20% for bracket 3.
Gold Transfer Tax Dilemma: 0.1% Rate Sparks Concerns Over Speculation Control, Says National Assembly Delegate
Amid discussions on the proposed Personal Income Tax Law, which includes taxation on gold bar transfers, several National Assembly delegates have expressed concerns despite their general agreement with the tax. While supporting the initiative, they question its humanitarian implications, the potential for “double taxation,” and its actual effectiveness in stabilizing the gold market.
0.1% Tax on Gold Bullion Transfers: What Threshold Triggers Taxation?
Distinguishing between purchasing gold bars for savings and speculative gold trading is a complex challenge, as noted by a National Assembly delegate.
Revised Title:
“Parliamentary Delegate Proposes Tax Threshold for Household Businesses at Minimum of VND 500 Million to VND 1.5 Billion”
According to delegate Hoàng Văn Cường, for retailers and agents, the minimum taxable threshold should be 1.5 billion VND. For service providers and businesses that do not incur material costs, such as construction contractors who do not include material expenses, this threshold should be at least 500 million VND.
