The Ministry of Finance(MoF) has proposed to the government to remove income tax on dividend payment to the shareholders and transaction tax and adjust personal income tax as well, the online newspaper Phapluat TP HCM reported on April 20.
Current tax shareholders have to pay 5 percent tax on their dividend receipt and 1 percent tax on share transferring.
The prime minister of Vietnam agreed on this proposal at the regular meeting on March, but still waiting for the approval of the 13th National Assembly on this July, MoF said.
On other important issue, MoF also asked for raising the minimum income tax level to 5.6 million dong,
MoF affirmed that the personal income tax adjustment will affect on state budget collection, by still ensure the National Assembly’s task to raise state budget collection by 7-8 percent and cut recurrent expenditure by 10 percent as saying on the Resolution 11. Personal income tax collection is estimated to reach VND29 trillion this year compared with total state budget collection estimated of VND595 trillion.
The MoF’s proposal appears to bring a good news to investors on Vietnam stock market.