Investors track the market's movements on a trading floor of MB Securities. (Source: VNA)

From July 1, several previously VAT-exempt brokerage services are subject to a 10% VAT rate, prompting firms to revise their service charges accordingly.

VAT Law 48/2024/QH15, passed by the National Assembly in November 2024, mandates that activities such as securities depository, custody, withdrawals, transfers, derivatives clearing, and margin account services now fall under taxable services.

To comply, many securities companies, including Saigon-Hanoi Securities JSC (SHS), Viet Dragon Securities Corporation (VDSC), Vietcombank Securities (VCBS), VNDirect Securities Corporation and others, have adjusted fee schedules for depository, custody, account transfers, position blocking, derivatives clearing and margin asset management.

SHS increased its custody fee for stocks, fund certificates, and covered warrants from 0.27 VND to 0.297 VND per unit per month. The depository fee for corporate bonds rose from 0.18 VND to 0.198 VND per unit, with monthly maximums climbing from 2 million VND (76.44 USD) to 2.2 million VND.

Withdrawal fees on custody now stand at 0.22% of total value (up from 0.2%), with minimum charges rising from 50,000 VND to 55,000 VND while the maximum from 1 million VND to 1.1 million VND per transaction.

VCBS and VDSC have both confirmed that from July 1, they will collect an additional 10% VAT on custodial services, margin asset management, derivatives clearing, position blocking, and securities transfers.

Authorities assert that the reform addresses systemic inequities in tax collection, ensuring that individual shareholders, especially those with significant holdings or executive perks - pay timely taxes. During 2016-2024, personal income from capital investment amounted to nearly 52 trillion VND, but taxes on dividends and share-based rewards represented only 1.3 trillion VND, or just 2.5% of total taxable receipts, highlighting considerable gaps in collection.

Comparisons were drawn to international standards in countries like Thailand and India, which levy a 10% tax upon dividend or bonus distribution.

Market reaction has been mixed.

Some investors express frustration over rising transaction costs. This is particularly concerning for long-term investors and strategic shareholders who receive stock bonuses, since the immediate tax obligation upon receipt could disrupt financial planning and investment cash flow.

Meanwhile, regulatory authorities argue the updates, covering both VAT adjustments and revised personal income tax timing, will promote fairness and discipline in tax administration.