In the context that the Ministry of Finance is seeking opinions on the draft Law on Personal Income Tax (amended), one of the controversial issues is how to tax the transfer of digital assets - a field that is growing strongly but also has many potential risks.
Recently, the Binance exchange sent a written comment, in which it specifically emphasized that there should be no tax on the total value of digital asset transactions. According to Binance, this option will directly affect market makers (MMs) - also known as "sharks" in the market, specializing in providing liquidation and creating transactions with extremely low profit margins.
If taxed on gross value instead of net profit, Binance believes MMs will face several disadvantages:
Tax liabilities can exceed actual profits, making many institutions less interested in providing liquidation.
Market liquidation declines, leading to the risk of strong price fluctuations, negatively affecting retail investors.
The withdrawal of the "sharks" will make the digital asset market in Vietnam less attractive than other countries, reducing global competitiveness.
Binance believes that income from the transfer of digital assets should be XEM as income from Capital transfers. Accordingly, the most reasonable tax rate is 20% on net profits instead of total transaction value.
In cases where profits cannot be determined, Binance suggests applying a 0.1% tax on the transfer value to ensure fairness and feasibility in management.
International stories and their impact on Vietnam
Notably, in the US, the issue of digital asset management and taxation is also becoming a hot topic. The Trump administration has repeatedly announced that it will reduce the tax burden for investors and create a clear legal corridor to make the US a global digital asset center.
If Vietnam applies a tax policy that is too heavy, there is a risk that Capital and high-quality human resources will flow to more open markets such as the US, Singapore or Dubai. This will not only weaken the domestic blockchain ecosystem, but also cause Vietnam to miss the opportunity to participate more deeply in the global financial technology race.
