Taxes on securities up 320 pct
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Capital gains taxes on securities surged 320 percent year-on-year in the first five months as new investors flocked to the stock market.
They were one of the major contributors to personal income tax collection in the first five months, which rose by nearly 13 percent, Cao Anh Tuan, head of the General Department of Taxation, said.
Vietnam imposes a flat 0.1 percent capital tax on every stock sale.
Other contributors were real estate (up 183 percent) and personal investment (up 169 percent), Tuan added.
In May, an average of 3,600 individual stock trading accounts was opened each day, the highest ever. The number of accounts now has risen 11-fold since January 2020 to 3.2 million, or one each for 3.26 percent of the population.
In the first five months of this year, 480,000 accounts were opened.
In the period, the benchmark VN-Index gained over 20 percent, the highest in Asia.
Questions & Answers
Q.What specifically contributed to the 13 percent rise in personal income tax collection during the first five months?
What specifically contributed to the 13 percent rise in personal income tax collection during the first five months?
Capital gains taxes on securities were a major contributor, along with taxes from real estate and personal investment, which rose by 183 percent and 169 percent respectively.
Q.How many individual stock trading accounts have been opened since January 2020?
How many individual stock trading accounts have been opened since January 2020?
The total number of accounts has risen 11-fold since January 2020 to 3.2 million, with 480,000 opened in the first five months of this year alone.
Q.What is the capital tax rate applied to stock sales?
What is the capital tax rate applied to stock sales?
A flat 0.1 percent capital tax is imposed on every stock sale.
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