Ministry proposes plan on income tax exemption
05/07/2011 09:42 am
Laws - The Ministry of Finance has finalized its proposal for personal income tax exemptions in 2011.
Accordingly, people will be exempt from personal income tax from August 1, 2011, to December 31, 2011 for allocated dividends (except for dividends from joint stock banks, finance investment funds, credit organizations) from investments in the stock market by individuals.
Such exemptions will also apply to personal securities transfers (with no 20 percent tax on income or 0.1 percent on the total value of the transfers) in order to stabilize the stock market and mobilize capital for development.
Other people eligible for such exemptions will include those with low incomes under the partial progressive tax tariff stipulated by the Personal Income Tax Law No 14/2007/QH12. The aim is to reduce workers’ difficulties and stabilize the economy in the context of high inflation.
The domestic consumer price index has shot up in recent years, by 19.9 percent in 2008, 6.52 percent in 2009, and 11.75 percent in 2010, and about 5.5 percent in the first quarter of this year, greatly impacting the daily life of tax payers.
Accordingly, people will be exempt from personal income tax from August 1, 2011, to December 31, 2011 for allocated dividends (except for dividends from joint stock banks, finance investment funds, credit organizations) from investments in the stock market by individuals.
Such exemptions will also apply to personal securities transfers (with no 20 percent tax on income or 0.1 percent on the total value of the transfers) in order to stabilize the stock market and mobilize capital for development.
Other people eligible for such exemptions will include those with low incomes under the partial progressive tax tariff stipulated by the Personal Income Tax Law No 14/2007/QH12. The aim is to reduce workers’ difficulties and stabilize the economy in the context of high inflation.
The domestic consumer price index has shot up in recent years, by 19.9 percent in 2008, 6.52 percent in 2009, and 11.75 percent in 2010, and about 5.5 percent in the first quarter of this year, greatly impacting the daily life of tax payers.
Source: VOV News
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