In its policy impact assessment report for the new Personal Income Tax Law, the Ministry of Finance noted that the current regulation – applying a tax rate of 0.1% on the selling price of each transaction, regardless of profit or loss – has received feedback from many investors. They proposed to collect tax only on actual income after deducting the cost price and related expenses.
Under current regulations, income from securities transfers is subject to a tax rate of 0.1% on the sale price of each transaction. For example, if an investor sells securities and earns VND100 million, they must pay VND100,000 in tax, regardless of whether the transaction is profitable or not.
The Ministry of Finance believes that this method helps simplify management, make policies transparent, and reduce compliance costs for both tax authorities and taxpayers. Previously, tax authorities applied a 20% calculation method on net income (selling price minus purchase price and related costs). However, in cases where the cost price and related costs cannot be determined, investors are forced to apply a tax rate of 0.1% on each sale price.
Currently, regulations require investors to pay taxes immediately after each transaction, not to combine them for year-end settlement. This means that the more transactions, the more taxes the state collects, regardless of whether investors make a profit or not.
The Ministry of Finance assessed that the personal income tax policy has played a role in regulating, redistributing income and narrowing the gap between rich and poor. However, the agency also acknowledged the need for reform to make the tax system more uniform and overcome current shortcomings.
In the process of developing the new Personal Income Tax Law, the Ministry of Finance aims to design policies that are suitable for individual business activities, encourage legitimate enrichment and ensure fairness in income regulation. At the same time, the law needs to meet the requirements of socio-economic development and approach international practices.
