With the argument that taxing gold investment will ensure fairness when it comes to treating different assets, Dr. Le Dat Chi at the HCMC University of Economics told The Saigon Times that the tax is not an issue and has its own principles. Not tax on tax The Saigon Times: Some argue that gold transactions must be taxed, while others disagree, claiming that gold as a foreign reserve is a type of currency and therefore should have a zero tax rate. Gold jewelry is subject to value-added tax (VAT), and gold trading businesses pay a 20% corporate income tax. Additionally, people buy gold with savings from their income, which is already taxed, including income tax. So, taxing gold transactions without due consideration could create a tax-on-tax situation. What is your comment? Dr. Le Dat Chi: First, in an economy, only legal tender is allowed to function as currency, while other forms of currency, like foreign currency and gold, are considered investment assets. Allowing these currencies to exist in any form is seen as the “dollarization” of the economy. The stronger the dollarization, the weaker the role of the central bank in regulating monetary policy. Therefore, the view that foreign currency […]
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