Investors buying and selling open-end fund certificates will be exempt from personal income tax.

The Ministry of Finance proposed to exempt personal income tax for investors transferring open-end fund certificates.

In the draft Personal Income Tax Law (amended), the Ministry of Finance proposes adding several activities eligible for tax exemptions and reductions, including open-ended fund certificate transactions. Data from the State Securities Commission shows that there are currently over 80 public open-ended funds with revenue of approximately 90,000 billion VND, which is very small compared to market demand. Currently, there are about 10 million investor accounts, of which 99.9% are individual investor accounts.

Investors trading open-ended fund certificates will be exempt from personal income tax.

PHOTO: DAO NGOC THACH

Statistics from 20 fund management companies show that personal income tax revenue amounts to approximately 20-30 billion VND per year. Fund management companies can track the holding period of fund certificates by investors through accounting methods. The Ministry of Finance proposes adding a regulation exempting income from the transfer of open-ended fund certificates held for two years or more from the date of purchase from tax; and adding a regulation reducing the personal income tax rate by 50% (currently 5%) on dividends received by individual investors from securities investment funds and real estate investment funds established under the Securities Law within a period stipulated by the Government .

At the same time, the law stipulates that the Government shall provide detailed regulations on the aforementioned tax-exempt and tax-reduced income to ensure that they are consistent with actual circumstances and that tax exemptions and reductions are applied to the correct subjects and in an appropriate manner.

Explaining the above proposal, the Ministry of Finance cited the legal basis that Resolution 68 of the Politburo on the development of the private economy stipulates: Reviewing and improving tax policies to facilitate investment activities by investment funds in enterprises; facilitating investment activities in enterprises; increasing investment limits in long-term assets or financing in the capital structure of enterprises; establishing mechanisms for mobilizing medium and long-term capital for investment funds.

Previously, Decision No. 1726 of 2023 by the Prime Minister approving the Strategy for the Development of the Securities Market until 2030 set the goal of focusing on developing institutional and professional investors. To achieve this goal, one of the proposed solutions is to prioritize the development of various types of securities investment funds, aiming for a reasonable balance between individual and institutional investors; diversifying the distribution channels of fund certificates; encouraging investor participation in the securities market through various types of investment funds; researching and proposing support mechanisms for securities investment funds to ensure the consistency and uniformity of the legal system; and regulating investors participating in privately offered corporate bonds. Therefore, the aforementioned tax exemption and reduction proposal aims to encourage the development of these funds in line with the direction of the Party and the State.

Source: https://thanhnien.vn/nha-dau-tu-mua-ban-chung-chi-quy-mo-se-duoc-mien-thue-thu-nhap-ca-nhan-185250908081033437.htm