The ministry's proposal forms part of its draft of a revised Tax Law. Under the revised law, enterprises in livestock feed and aquatic food production will be exempted from the current 5 per cent tax rate. — Photo vtc

HA NOI (Biz Hub) — Prime Minister Nguyen Tan Dung has approved the Finance Ministry's proposal to remove the business registration tax to reduce difficulties of companies engaged in livestock feed and aquatic food production.

The ministry's proposal forms part of its draft of a revised Tax Law. Under the revised law, enterprises in livestock feed and aquatic food production will be exempted from the current 5 per cent tax rate.

Also, under the revised law, citizens may choose payment methods for personal income tax on stock transfers and real estate.

The Prime Minister ordered concerned ministries and agencies to co-operate in completing the revised law and submitting the draft to the National Assembly Standing Committee for review and approval by the end of this month.

Tax on casinos

The ministry also proposed increasing the special consumption tax for casinos from the current 30 per cent to 35 per cent.

The ministry said current personal income tax laws stipulated that a 10 per cent tax be imposed on winners of more than VND10 million in casinos and lotteries.

But it is difficult to tax such earnings, ministry officials admitted. They pointed out that some countries and territories such as the Philippines, Singapore and Malaysia, as well as Laos and Macau, refrained from collecting personal income tax from casino and lottery winners, with tax agencies directly supervising casino and lottery operations and imposing corporate income tax instead.

The ministry therefore proposed the removal of personal income tax on casino winners and the increase of the special consumption tax on casinos, in line with international norms. — VNS