In Resolution 278 dated 13/9 concerning legislative work in September, the government provided feedback on the draft amendments to the Personal Income Tax Law.
The government believes the law should explicitly state that income from gold trading is taxable. This aims to increase market transparency and limit gold speculation. The Ministry of Finance has been tasked with coordinating with the State Bank to finalize this provision in the draft law.
This directive comes amid recent fluctuations in gold prices. SJC gold bars recently surpassed a record 20,9 million dong per tael at some brands, exceeding global prices by roughly 20 million dong.
While taxation is an effective market regulation tool, it has never been applied to gold in Vietnam. Experts believe taxing gold could generate revenue for the state budget and create fairness with other investment channels like securities and real estate. This measure could also combat the "gold-ization" of the economy, as buyers would need to consider holding periods and potential profits/losses based on global and domestic price fluctuations and applicable taxes.
Earlier, in Directive 159, Prime Minister Pham Minh Chinh also demanded strict action against market manipulation and hoarding that drive up gold prices. Since 9/9, the Government Inspectorate, in coordination with the Ministries of Industry and Trade, Finance, Public Security, and the State Bank, has formed an inspection team to examine compliance with gold trading policies by credit institutions and businesses, focusing on anti-money laundering, invoice and document usage, and other related matters.
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People buying gold at a gold shop in Binh Thanh District during the God of Wealth Day, 2/2025. Photo: Quynh Tran |
People buying gold at a gold shop in Binh Thanh District during the God of Wealth Day, 2/2025. Photo: Quynh Tran
Besides taxing gold transactions, the government has assigned the Ministry of Finance and related agencies to review the draft Personal Income Tax Law to ensure consistency with the Constitution and other relevant laws, such as those governing land, securities, social insurance, and high technology. The revised law should also improve tax administration, ensuring timely and equitable collection.
The drafting agency needs to review and add exemptions for certain incomes, such as severance pay, allowances, and living expenses paid by Vietnamese agencies abroad. The progressive tax table should be finalized according to Option 2, as reported by the Ministry of Finance.
The government emphasized the importance of carefully assessing the impact on business income to avoid significant disruption to people's activities, while effectively implementing the policy of abolishing estimated taxes according to Resolution 68 of the Politburo on private sector development.
The regulations should also promote decentralization, clearly outlining the government's role in specifying fluctuating aspects to ensure flexibility in management.
Phuong Dung
