Vietnam is set to introduce a groundbreaking tax on cryptocurrency trades, aligning with its stock market taxation policies. This move is part of a draft policy put forth by the Ministry of Finance, aiming to regulate digital asset transactions with a 0.1% levy, similar to existing stock trading taxes.
Understanding the New Crypto Tax Policy
According to The Hanoi Times, under the new proposal, individuals engaging in cryptocurrency transfers via licensed service providers will incur a 0.1% personal income tax on each transaction’s value. This taxation approach mirrors the current system applied to stock exchanges in Vietnam.
Exemptions and Corporate Implications
The draft policy outlines that crypto transactions will be exempt from value-added tax. However, the 0.1% turnover-based tax is applicable to all investors, regardless of residency. Companies involved in crypto dealings will face a different tax structure, with institutional investors subject to a 20% corporate income tax on profits after accounting for expenses.
This comprehensive tax framework classifies cryptocurrencies as digital assets dependent on cryptographic technology for issuance and transfer verification. In addition, Vietnam is setting stringent requirements for digital asset exchange operators, mandating a minimum charter capital of 10 trillion Vietnamese dong (approximately $408 million).
Vietnam’s Regulatory Landscape for Crypto
Vietnam’s regulatory approach is not just about taxation. The country is also opening its doors for licensing digital asset trading platforms, part of a five-year pilot program for a regulated crypto market slated to begin in 2025. Despite these efforts, no companies have applied yet due to high capital requirements and strict eligibility conditions.
The State Securities Commission of Vietnam (SSC) has announced that applications for operating licenses will be accepted starting January 2026. This initiative is part of Vietnam’s broader strategy to bring cryptocurrency under formal regulatory oversight.
As Vietnam continues to advance in the crypto space, these regulations will play a crucial role in shaping the future of digital asset trading in the region. Investors and companies alike should prepare for these changes and understand the implications on their trading activities.
