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

Abstract

For many companies, shareholders are arguably the most importantstakeholders. By providing firms with capital via the purchase of shares, investorsexpect a profitable distribution of earnings, most commonly in the form ofdividends. Jurisdictions in different nations, such as Vietnam and Australia (theobjects of this statutory comparative analysis), have adopted various approachesregarding the taxation of company earnings and dividends, which may haveconsiderable economic and social implications. This paper conducts a rigorousanalysis which examines both the Australian and Vietnamese taxation rules ondividends, as well as evaluating whether the law in one country is preferable tothe 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 respectivepolicy produces. The comparative case analysis demonstrates that Vietnam, as adeveloping economic force in Southeast Asia, can increase the allure of capitalinvestment by adopting dividend taxation laws more favorable to investors. Keywords - Taxation, Corporations Law, Dividends, Capital Investment, EconomicTheory, Foreign Trade, Economic Growth, Stimulus, Income Tax, DescriptiveResearch, Australia, Vietnam