Ktetaichinh’s Blog

December 30, 2009

Gold investor taxing should be delayed: enterprises

Filed under: Uncategorized — ktetaichinh @ 3:32 pm
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VNBusinessNews.com – 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 exchange centers.

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 centers or requiring investors to provide 100% collateral for loans. The centers may lose customers if the suggestions are passed, Thua explained.

One banking official expressed concern over the tax policy as each center has its own operating and order placing rules. It will take gold exchange operators a lot of time to withhold 0.002% on the sales price on every transaction.

An investor also disagreed with the tax rate of 20% 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% 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% of taxable income.

Otherwise, if the gold trading centers can easily calculate profit and loss from each transaction, gold investors will have to pay 20% of the income they get from profitable transactions. However, if the centers cannot calculate profit and loss for individual investors

, the investors will have to pay 0.1% of the sales price. At year-end, investors will pay a 20% tax on any profits.

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