Philippine E-Journals

A Statutory Comparative Analysis of Dividend Taxation Laws in Vietnam and Australia: Restructuring Regulatory Regimes to Attract Capital Investment

Wesley Evan Kendall

 

Abstract:

For many companies, shareholders are arguably the most important stakeholders. By providing firms with capital via the purchase of shares, investors expect a profitable distribution of earnings, most commonly in the form of dividends. Jurisdictions in different nations, such as Vietnam and Australia (the objects of this statutory comparative analysis), have adopted various approaches regarding the taxation of company earnings and dividends, which may have considerable economic and social implications. This paper conducts a rigorous analysis which examines both the Australian and Vietnamese taxation rules on dividends, as well as evaluating whether the law in one country is preferable to the other. The qualitative methodology employed was statutory case oriented evaluation which scrutinizes the operation of specific statutory policies, how those policies function comparatively, and the concomitant outcomes each respective policy produces. The comparative case analysis demonstrates that Vietnam, as a developing economic force in Southeast Asia, can increase the allure of capital investment by adopting dividend taxation laws more favorable to investors.