It is unreasonable to tax the total value of securities transactions
Currently, personal income tax (PIT) for securities transactions in Vietnam is calculated at a fixed rate of 0.1% on the total transaction value. Investors think this is unreasonable, when not taxing real profits but directly applying it to total transaction value.
Mr. Nguyen Hai Nam (36 years old, Dong Da district, Hanoi) said: "The stock market is fluctuating, not every transaction is profitable, but I still have to pay tax on the total transaction value even if I suffer losses. If the tax is adjusted appropriately, investors will feel less pressure and make more accurate decisions."
According to Dr. Nguyen Ngoc Tu - Former Editor-in-Chief of Tax Magazine, lecturer at Hanoi University of Business and Technology: "Stock is an investment channel with its own characteristics, in which the risk level and profit fluctuate according to the market. The current application of a 0.1% tax on each transaction is more like a revenue tax than an income tax, not really reflecting the nature of investors' profits. A more reasonable option is to apply a 20% tax rate on actual profits, as a model in many developed countries".
Mr. Tu also said that with current transaction account management technology, calculating net profits can be easily done, creating favorable conditions for improving tax policies.
Creating motivation for long-term bond investment, controlling real estate speculation
For bonds, especially corporate bonds, this is an important capital mobilization channel for the economy. However, tax policies for this type of investment still need to be improved to create more favorable conditions for investors.
According to Dr. Nguyen Tri Hieu - Director of the Global Institute for Financial and Real Estate Market Research and Development: "Currently, income from bond interest is not subject to direct tax, but transactions on the secondary market are subject to personal income tax. This may reduce the attractiveness of bonds, especially when corporate bonds have encountered difficulties in the past time".
Mr. Hieu said that there should be a tax incentive policy for long-term bonds to encourage investors to keep capital stable, instead of focusing only on short-term transactions.
For real estate, current tax policies in Vietnam mainly include non-agricultural land use tax, personal income tax from real estate transfers and registration fees.
According to Dr. Hieu, Vietnam has not applied annual property tax like many developed countries, leading to some limitations in market management and budget revenue. Mr. Hieu commented: "In many countries such as the US, Canada, Japan or South Korea, real estate tax is not only applied to transactions but is also applied to annual asset values to control speculation and create sustainable revenue. If implemented in Vietnam, there needs to be a suitable roadmap to avoid affecting people with real housing needs".
In addition, he also noted that if unreasonable property taxes are applied, it can create financial pressure for people and businesses. Therefore, it is necessary to include a tax exemption policy for those who own a house to live in, while having an appropriate tax rate for those who own a lot of real estate to ensure fairness and transparency.
