Proposal not to tax bonus stock sales when investors lose money

(NLDO) - VAFI believes that individuals who benefit from buying and selling gold should be taxed, instead of bonus stock transactions when they suffer losses.

On October 22, the Vietnam Association of Financial Investors (VAFI) sent a document proposing to relevant ministries and branches not to tax the sale of bonus shares when investors sell bonus shares at a loss.

VAFI believes that under current law, bonus shares are formed from the company paying dividends in shares. Issuing bonus shares is a form of capital mobilization for enterprises. Paying bonus shares is not a form of distributing after-tax profits in cash... Not to mention, the Vietnamese stock market is still young, issuing new shares to mobilize capital still faces many difficulties, so paying bonus shares is an effective alternative solution.

Investors receiving bonus shares will be at a disadvantage if taxed.

VAFI said that when selling bonus shares, investors are taxed 0.1% on the total transfer value and 5% on the total par value of bonus shares sold.

In addition, the taxation of bonus shares will make investors dislike bonus shares, making it difficult to raise capital through bonus shares. Because there has been a situation where the price of bonus shares has fallen sharply at the time the issuance takes effect.

According to Mr. Nguyen Hoang Hai, General Secretary of VAFI, Vietnam's tax policy on regulating capital flows into the stock market is not like many countries in the world . All countries have policies using tax tools to direct capital flows strongly into the stock market and banking system, limiting cash flows into the gold and real estate markets. To achieve this goal, taxing individual investors participating in the stock market is always more preferential than investing in the gold and real estate markets.

In our country, individual investors in the stock market today have to pay many taxes such as cash dividend tax, bonus stock tax, transfer tax. Meanwhile, gold investors are not currently subject to personal income tax.

Source: https://nld.com.vn/de-xuat-khong-danh-thue-giao-dich-ban-co-phieu-thuong-khi-nha-dau-tu-lo-196251022185131952.htm