Ministry aims for comprehensive tax policies on real estate, gold and casinos

Ministry aims for comprehensive tax policies on real estate, gold and casinos

A draft amendment to the Personal Income Tax Law, which includes provisions on property transfers, is scheduled to be tabled at the next National Assembly session.

The Ministry of Finance is drafting comprehensive tax policies on real estate, gold trading and casino operations with an aim to strengthen transparency and feasibility. — VNA/VNS Photo Tuấn Anh

The Ministry of Finance is drafting comprehensive tax policies on real estate, gold trading and casino operations with an aim to strengthen transparency and feasibility with numerous laws and decrees to be submitted to the Government and the National Assembly for review in coming months.

Speaking at a press conference held by the ministry on Friday, Lưu Đức Huy, Deputy Director of the Department of Tax, Fee and Charge Policy Management and Supervision, said the ministry is revising real estate taxation to ensure consistency with the Land Law and the Law on Real Estate Business while improving transparency and fairness in the market.

A draft amendment to the Personal Income Tax Law, which includes provisions on property transfers, is scheduled to be tabled at the next National Assembly session.

The proposal of taxing property transactions based on holding periods was dropped after public consultation, Huy said, adding that the ministry instead plans to maintain current regulations to ensure stability, feasibility and social consensus.

On gold trading, Huy said the ministry is working with the State Bank of Vietnam to add bullion transactions to taxable income.

Accordingly, the draft Law on Personal Income Tax proposes a 0.1 per cent tax rate on bullion transfers. Transactions of raw gold and jewelry would remain exempt.

Huy said the move is expected to curb the sharp gold price rises of and narrow down gaps between domestic and global benchmarks.

Việt Nam currently imposes no personal income tax on bullion trading because individuals are prohibited from trading gold bars under existing regulations, with transactions limited to licensed banks and financial institutions.

With regard to casinos and betting, Nguyễn Hoàng Dương, Deputy Director of the Department of Financial Institutions, said that the ministry is reviewing Decree 03/2017/NĐ-CP on casino operations.

Under the decree, only projects with a minimum investment of $2 billion are qualified for licences. At present, there are only three large-scale casinos operational in Phú Quốc, Hồ Tràm and Nam Nội An together with six smaller ones which were licensed before the decree came into force.

Việt Nam has allowed pilot schemes for Vietnamese to enter some large casinos, Dương said, adding that initial assessments showed positive impacts, including job creation, tourism and infrastructure development. The ministry is evaluating the pilot implementations for adjustments.

Betting activities, including horse racing, dog racing and international football, are also under review.

Deputy Minister of Finance Nguyễn Đức Chi said that casino and betting industries have been heavily affected by the COVID-19 pandemic and face pressure to adapt to digital transformation, requiring amendments to the regulations. He added that a separate law to regulate these industries may be put into consideration.

Push for stock market update and digital assets

The Ministry of Finance is drafting comprehensive tax policies on real estate, gold trading and casino operations with an aim to strengthen transparency and feasibility. — VNA/VNS Photo Tuấn Anh

At the conference, Chi said that the ministry is hastening efforts to upgrade Việt Nam’s stock market to ensure stability, transparency and sustainability with drastic legal reforms, new technology systems and stronger international engagements.

“Market upgrading is not a one-off taget but a continuous process that must be sustained over the long term," Chi said, adding that the gold is to build a transparent and stable stock market that supports the economy, enterprises and long-term capital market.

The ministry has launched a new IT system, advanced discussions with FTSE Russell and MSCI, and signed a cooperation memorandum with FTSE Russell.

On digital assets, Hà Duy Tùng, Deputy Chairman of the State Securities Commission, said that the ministry is drafting regulations on licensing for cryptocurrency exchange under a controlled pilot scheme.

No company has yet applied, to date, though some have shown interest, Tùng said.

Chi said that detailed regulations will be issued early to create favourable conditions for enterprises to participate in the crypto asset market.

“The long-term goal is building a transparent, modern and sustainable market that supports economic growth and provices effective fundraising channels.” 

Bizhub