The Ministry of Finance is soliciting opinions on the draft Decree on financial policies in international financial centers, which sets out minimum capital requirements for securities companies participating in this field.
According to the draft, domestic securities companies must have a minimum charter capital contribution and equity of VND 5,000 billion. For foreign investors, the equivalent capital is about 190 million USD. The organization applying for a license must have a continuous operation period, no accumulated losses and have a profit of at least 2 consecutive years before the time of proposing to establish a member unit at the financial center.
For newly established organizations, the draft stipulates a minimum charter capital of VND800 billion, and a general director and at least 10 personnel must own a securities practice certificate. The operations allowed for implementation include brokerage, investment consulting, self-trading, issuance guarantee, investment fund management and other services under the license.
However, these companies will be limited in their scope of operations: Not allowed to directly or indirectly provide financial services, support services and financial products to customers outside the administrative boundaries of the international financial center.
In addition, the draft Decree also proposes tax incentives to attract high-quality investment and human resources.
For projects in priority industries developing into the International Financial Center, apply a corporate income tax rate of 10% for a period of 30 years, are exempted from tax for a maximum of no more than 4 years and have a 50% reduction in the tax payable for a maximum of no more than the next 9 years.
For projects not in priority industries developing into the International Financial Center, the tax rate is 15% for 15 years, with a maximum tax exemption of no more than 2 years and a 50% reduction in the tax payable for no more than the next 4 years.
Regarding personal income tax, the draft Decree stipulates that managers, experts, scientists and people with high professional qualifications working at the International Financial Center (including Vietnamese and foreigners) are exempt from personal income tax on income from salaries and wages until the end of 2030.
The tax exemption period is calculated continuously from the month of income incurred. In case of income arising in the month, the tax exemption period will be calculated for all months.
In case of selling all enterprises owned by individuals in the form of transferring capital associated with real estate, personal income tax shall be declared and paid according to real estate transfer activities.
"C business income tax and personal income tax not specified in the Decree will be implemented in accordance with the provisions of current law on corporate income tax, personal income tax and tax management," the draft clearly states.
