In a recommendation sent to the Ministry of Finance, voters in Ho Chi Minh City expressed concern that collecting tax on gold bar transactions would affect the legitimate rights and interests of citizens. Additionally, this policy could increase transaction costs and potentially impact ownership sentiment and the stability of the gold market.

However, the Ministry of Finance affirmed that these regulations do not affect the legitimate rights and interests of citizens. It also will not disrupt the market and is a necessary step to help limit speculation, contributing to stabilizing the gold market.

Gold bars at SJC headquarters in District 3, 3/2025. *Photo: Quynh Tran*

Under the personal income tax law, the regulator will collect a 0,1% tax on each gold bar transfer transaction price. Specifically, the personal income tax payable equals the gold bar sale price multiplied by the 0,1% tax rate.

For example, if an individual sells gold bars for 500 million dong, the personal income tax payable will be 500,000 dong (0,1% of the total amount received).

According to the Ministry of Finance, the tax application has been thoroughly reviewed and researched, based on aggregated feedback from agencies and citizens, and received approval from the majority of National Assembly members.

Additionally, the law assigns the Government the responsibility to specify a taxable value threshold for gold bars. This is intended to exclude individuals who buy and sell gold for savings or storage, not for business purposes, thereby aligning with the current custom of citizens hoarding gold, according to the Ministry of Finance.

To ensure the regulation's feasibility, the Government will establish the taxable value threshold, the application time, and adjust tax rates in line with the gold market management roadmap.

"The Government will decide on the collection of tax on gold bar transfer transactions when market management conditions meet the requirements for collection and management work," the Ministry of Finance stated.

In reality, income tax is an effective tool for market regulation but has not yet been applied to gold in Vietnam. Analysts suggest that taxing the precious metal could generate revenue for the state budget and establish fairness with other investment channels such as stocks and real estate. This solution would also help combat the "goldification" of the economy, as buyers would need to calculate holding periods and anticipate profits or losses based on fluctuations in world and domestic prices, as well as the tax payable.

Domestic gold market fluctuations were a significant concern for many delegates during discussions at group and plenary sessions this term. Gold prices have risen recently, with the difference between domestic and world gold prices sometimes exceeding 20 million dong per tael.

To stabilize the market, the Government has implemented various measures, including increased inspections. From 10/10, the state monopoly on gold bar production was abolished. Additionally, the State Bank of Vietnam is researching a legal framework for a gold exchange, which is expected to transparentize transactions and enable the Government to manage the gold market effectively.

Phuong Dung