Vietnam finance ministry seeks to ease tax pressures

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Vietnam's Ministry of Finance is expected to propose a series of new polices to ease tax burdens in July, Tuoi Tre newspaper reported Thursday.

A personal income tax exemption for taxpayers with a monthly income of VND5 million or less ranks high among the new recommendations. The proposed threshold for those with one dependent is VND6.6 million, and VND8.2 million for taxpayers with two dependents.

The proposal that's expected to be submitted to the National Assembly will also include a capital gains tax exemption for stock investors from August through the end of 2012. The ministry said such an exemption is necessary because many investors incurred losses during the recent market downturn.

Analysts and taxpayers have been calling for amendments to the Personal Income Tax Law, which was approved in 2007, to keep it appropriate to the current economic situation.

On May 6, the ministry submitted a request to the National Assembly's Finance and Budget Committee so that stock market players would be exempt from a 5 percent tax rate on dividends and a 0.1 percent tax on each transaction.

The proposal was rejected.

Tuoi Tre reported that the finance ministry also plans to propose a 20-30 percent tax reduction for small and medium enterprises and labor-intensive companies. The reductions would total roughly VND2-2.5 trillion, the ministry estimated.

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