Does Taxing Gold Bullion Transactions Impact Gold Prices?

As of early afternoon on January 7th, the buying price of SJC gold bars was listed at 156.1 million VND per tael, with a selling price of 158.1 million VND per tael, marking a decrease of 500,000 VND per tael compared to the morning rates.

The price of SJC-branded gold rings remained stable, with a buying price of 151.6 million VND per tael and a selling price of 154.6 million VND per tael.

Domestic gold prices cooled down in line with the global downward trend. In the international market, gold was trading at approximately $4,448 per ounce in the afternoon (Vietnam time), a drop of around $25 per ounce from the morning session.

Currently, global gold prices are about 16.6 million VND per tael lower than SJC gold bars.

Regarding efforts to stabilize the gold market, the State Bank of Vietnam has announced several measures, including the submission of Decree No. 232/2025/NĐ-CP on gold trading management to the Government and the issuance of Circular No. 34/2025/TT-NHNN guiding the implementation of this decree. The State Bank is also preparing the necessary conditions to manage the gold market under a new mechanism.

One of the newly introduced regulations aimed at reducing the appeal of gold to investors is the imposition of a 0.1% personal income tax on gold bar transactions.

In an interview with *Người Lao Động* newspaper on the afternoon of January 7th, Mr. Huỳnh Trung Khánh, Vice Chairman of the Gold Business Association, stated that the 0.1% tax rate is relatively low and is unlikely to significantly impact gold prices or ensure the goal of minimizing the price gap between domestic and international gold markets.

“A 0.1% tax on the transfer price is a cautious approach in the initial phase. In the long term, regulators may consider increasing the tax rate or making adjustments once the goal of narrowing the price gap with the global market is achieved,” said Mr. Khánh.

From a buyer’s perspective, Ms. Bích Ngân (Ho Chi Minh City) shared that on the morning of January 7th, she and her friend each purchased 2 taels of SJC gold bars for savings, at a price of over 15.8 million VND per tael.

“I bought gold for savings, and since the quantity is small, I’m not too concerned about the 0.1% tax on the transfer price. What I’m more interested in is the tax threshold—will it apply to purchases of 1-2 taels like mine, or will it only apply to larger transactions of 5-7 taels worth hundreds of millions of VND?” Ms. Ngân wondered.

According to experts, one of the key factors that could help cool down domestic gold prices is the addition of supply from imported gold.

At a recent press conference, Mr. Shaokai Fan, Managing Director for Asia-Pacific (excluding China) and Global Central Banks at the World Gold Council (WGC), emphasized that any tax measures on gold in Vietnam should be designed to achieve two objectives: minimizing speculation and preventing citizens from shifting transactions from formal to informal markets to avoid taxes.

If gold is taxed heavily, people may turn to the “black market” for transactions, which would be counterproductive and contradict Vietnam’s goal of liberalizing the gold market. Additionally, if Vietnam imposes high taxes while neighboring countries like Singapore, Hong Kong (China), and Malaysia do not, gold could flow across borders, making smuggling more difficult to control.