PM Okays Tax Break on Personal Incomes
Prime Minister Nguyen Tan Dung recently allowed Ministry of Finance to submit its proposals on tax reductions and exemptions on incomes from wages and securities investments from August 1, 2011 to December 31, 2012 to the next parliamentary meeting in July.
According to the proposal, individuals will be exempted personal income tax in one year in case their incomes are less than VND9 million a month.
The ministry also suggested that income tax exemptions be subject to wage earners with monthly income of VND5 million downwards. The tax-free amount will be raised to VND6.6 million downwards and VND8.2 million in case taxpayers have one and two dependants, respectively. The loss of the State Budget is forecast at VND3,000 billion from this plan.
Besides, the ministry proposed exempting personal income tax on securities investment from August 1, 2011 through 2012. Income from dividends will be free from personal income tax in order to be treated equally as capital gains from savings. The tax on transfer of securities will be exempted in one year. According to the Ministry of Finance, most stock investors are having no gains or even suffering losses. Hence, the tax exemption is the best way to shore up the stock market.
Q.C
Vietnamese
