Stockbrokers offer to pay customers' taxes

Hanoi (VNA) - An Binh Securities Co has announced that it will pay any income
tax due on securities investment for its clients during the first quarter of this
year.

The brokerage is making the offer to counteract the perceived psychological impact
on investors caused by the new Law on Personal Income Tax which, for the first
time, subjects dividend income and capital gains from securities trading to
taxation.

The new tax law took effect on January 1.

Counting on the tax to have limited real impact on investors, An Binh hoped its
offer would help stimulate trading during the current market doldrums.

Nguyen Thanh Hai, head of brokerage and business development department for the
firm, said the company would consider whether to continue the offer once the first
quarter ends.

Orient Securities Co recently made a similar but more limited offer. For clients
with trading value of up to 5 billion VND (294,000 USD) a month, the brokerage
would pay 80 percent of the 0.1 percent transaction fee for each trade, a tax
option set forth in the new law in lieu of a net capital gains tax.

John Nolan, a HCM City-based analyst, said such offers demonstrated the increased
competitiveness among securities firms in the context of market turmoil. "If you
want to increase your market share, you have to create prominent products for your
customers. That's a fact," said Nolan.

"When we decided to offer this service, we focused on our pledge to customers to
come together with them during hard times," Hai said.-Enditem