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| Gold investor taxing should be delayed: enterprises |
| 31-DEC-2009 Intellasia | The Saigon Times Daily |
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| 31 Dec, 2009 - 7:00:00 AM |
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Gold trading enterprises and investors have said it is not the time to impose personal income tax on individual gold investors as the nation has yet to release official regulations to manage gold ~change centres.
The Tax Policy Department under the finance ministry is still fielding suggestions on the tax collection. Meanwhile, gold investment and trading firms are all worried about business if the draft law on gold exchange management becomes a legal document.
Huynh Trong Thua, general director of 24K Gold Trading & Investment Co, said it was necessary to tax gold investors as they can earn profits from trading the precious metal. However, the government should prepare a schedule for the tax collection to support gold exchange operators and investors, Thua said.
Another director of a gold trading firm said the tax collection had caused pressure on gold exchanges. Investors are hesitant about the investment channel after the central bank suggested either prohibiting the gold exchange centres or requiring investors to provide 100 percent collateral for loans. The centres may lose customers if the suggestions are passed, Thua explained.
One banking official expressed concern over the tax policy as each centre has its own operating and order placing rules. It will take gold exchange operators a lot of time to withhold 0.002 percent on the sales price on every transaction.
An investor also disagreed with the tax rate of20 percent on taxable income. "This is a high rate and I am thinking to return to the stock market early next year;' he said.
The Tax Policy Department has put forward two methods of taxing gold investors. With the first option, gold trading companies will turn in 0.002 percent of the sales price on every transaction, no matter if the transaction brings loss or profit, to tax agencies. The investors will adjust the sum with the agencies at the end of the year. The tax rate is 20 percent of taxable income.
Otherwise, if the gold trading centres can easily calculate profit and loss from each transaction, gold investors will have to pay 20 percent of the income they get from profitable transactions. However, if the centres cannot calculate profit and loss for individual investors, the investors will have to pay 0.1 percent of the sales price. At end of the year, investors will pay a 20 percent tax on any profits.
Government opens up oil sector to more firms
31/Dec/2009 Intellasia | Vietnamnews
The government has thrown open the petroleum sector to more categories of businesses, relaxing restrictions that prevented all but a few firms from operating in the sector.
Its new Decree No 115/2009/ND-CP which amends Decree No 48!2000/ND-CP and is put into effect on February 14 next year, allows enterprises that have been set up under the Enterprise Law as well as all foreign and Vietnamese organisations and individuals to join the work.
Under the new decree, all exploration and drilling activities will have to be carried out through Vietnam Oil and Gas Group (PetroVietnam).
Its news exploration contracts to be extended if the work is not completed on schedule unlike earlier when a fresh contract had to be signed.
The decree also supplements some regulations related to bidding for petroleum services. It allows organisations and individuals involved in petroleum exploration and drilling to hire sub-contractors.
The changes are expected to facilitate greater participation in oil exploration and drilling by interested parties.
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