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- Vietnam plans a 0.1% turnover tax on individual crypto transfers.
- The draft keeps crypto trading outside the VAT system.
- High capital rules aim to limit risks in the pilot market.
According to the report, Vietnam is preparing a clear tax structure for crypto asset activity. The Ministry of Finance has released a draft circular for public consultation. The document focuses on taxation, market control, and investor protection. It reflects the state’s cautious approach to digital assets. Authorities want order and transparency.
They also want to align crypto rules with existing financial laws. The draft proposes a 0.1% tax on transaction turnover for individuals. The rule applies to each crypto transfer. It covers users who trade through platforms run by licensed service providers. Residency status does not change the obligation.
Vietnam Applies Securities Tax Rate to Crypto
This rate is equivalent to the rate applied to the trading of securities. The government seeks to ensure uniformity across all markets. The transfer and trading of cryptocurrencies remain exempt from the value-added tax. This is a move to eliminate VAT issues from the trading process. It is also a move to avoid double taxation.
This policy views cryptocurrencies as a financial product rather than a consumer product. However, there is a separate rule for institutional investors. Companies incorporated in Vietnam must pay corporate income tax of 20%. This is applicable to the income earned from the transfer of cryptocurrencies.
The authorities calculate the taxable income by subtracting the cost of purchase and direct expenses from the selling price. This is a standard corporate tax calculation. This approach is helpful in eliminating ambiguity.
This draft has provided a definition of cryptocurrencies as digital assets using cryptographic technology for creation, storage, and transfer. This has eliminated ambiguity. Vietnam has launched a five-year pilot market for cryptocurrencies. This is effective from September 2025. All cryptocurrencies must be denominated in the Vietnamese Dong.
Vietnam Plans High Capital Rules for Crypto Exchanges
The government also wishes to have control of the capital. Besides, the government wishes to have price stability. There are various activities carried out in the pilot. One of these activities includes the issuance and provision of crypto assets. Another activity includes the operation of the trading platforms. The government wishes to monitor these activities. This aims at ensuring safety and transparency.
There is a desire to ensure legal rights are protected. Before the draft, Vietnam taxed crypto assets like securities. The draft maintains the major idea. However, it enhances it. It gives a clear definition of responsibility. It has a high threshold to join. Firms need to have at least 10 trillion dong ($408 million) to operate digital exchanges.
This is three times higher than for commercial banks and exceeds aviation requirements. The government aims to show caution. Large capital limits participation to strong firms and reduces systemic risk. Vietnam seeks both innovation and stability, and the draft reflects this balance.
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