The draft tax policy on crypto assets in Vietnam is being further refined with many new proposals related to how to determine taxable revenue in each transfer transaction. According to the latest feedback, the State Bank of Vietnam recommends that the drafting agency add specific regulations on determining transfer revenue for each transaction for both foreign organizations and individual investors participating in the crypto asset market.
Currently, transactions of cryptocurrencies like Bitcoin and Ethereum occur very quickly, multiple times a day, and their prices fluctuate significantly. Therefore, without clearly defining the revenue for each sale, it will be difficult to calculate taxes accurately and disputes between taxpayers and tax authorities are likely to arise. This proposal aims to require the legal document to clearly define the determination of revenue from each transaction: whenever an investor sells a cryptocurrency, the revenue of that transaction must be determined at the time of sale. This revenue is typically understood as the total amount of money received from selling crypto (for example, if one coin sells for 100 million VND, the revenue for that transaction is 100 million VND). From this revenue figure, the tax authorities will apply the corresponding tax rate, for example, calculated as a percentage of the revenue from each transaction.
Requiring revenue to be calculated on a transaction-by-transaction basis is significant because it helps to manage taxes more transparently in the digital asset market, especially for individual or foreign institutional investors trading through exchanges. With clear regulations, investors will know exactly how much revenue they must declare for each sale order, avoiding situations where revenue is accumulated for an entire year before calculation, or under-declaring due to the inability to determine the standard transaction price.
During the consultation process for the draft Circular guiding the implementation of value-added tax, corporate income tax, and personal income tax on transactions, business, and transfers of crypto assets, the authorities of several localities also proposed amendments to ensure greater clarity regarding the tax base. According to the proposal, organizations established and operating under Vietnamese law that generate income from the transfer of crypto assets will be subject to declaration and payment of corporate income tax at the standard rate of 20%, except for cases enjoying preferential treatment under current tax laws.
The proposed method for determining taxable income is based on the principle of subtracting the initial purchase price and legitimate transfer-related costs from the selling price of the cryptocurrency asset. A crucial condition is that these costs must be fully documented with legal invoices and receipts as required by regulations. This approach is XEM similar to the method used for calculating income from the transfer of securities or other financial assets, helping to create consistency within the tax legal system.
For foreign organizations and individuals trading crypto assets through platforms providing services in Vietnam, the draft currently proposes applying a tax calculation method based on a percentage of revenue from each transaction. Specifically, foreign organizations may have to pay corporate income tax at a rate of 0.1% on the revenue of each transaction, while individual investors – regardless of whether they are residents or non-residents – are also subject to personal income tax at a similar rate. However, the State Bank of Vietnam believes that the method of determining this revenue needs to be clarified further to avoid difficulties in practical implementation, especially in the context of the digital asset market with its rapid fluctuations and large volume .
Regarding the issue of determining transaction prices as a basis for tax calculation, the Ministry of Finance stated that it has assigned the Securities Commission to develop a separate guidance document to implement the Government's resolution on the pilot mechanism for managing crypto assets. Therefore, detailed content on the method of determining transaction prices will not be stipulated in this draft Circular but will be guided in a specialized document to ensure flexibility and suitability to market practices.
Simultaneously, businesses providing services related to cryptocurrencies, such as exchanges, custody platforms, or payment intermediaries, must also pay corporate income tax at a rate of 20% if they generate income from these services. This regulation is expected to contribute to a clearer legal framework for fintech businesses operating in Vietnam, while also increasing market transparency.
Another noteworthy point is the Ministry of Science and Technology's proposal to add a provision for a pilot implementation period for the policy. Accordingly, the Circular should clearly stipulate a five-year pilot period, with continued implementation after a comprehensive evaluation of its effectiveness. The goal is to ensure consistency with the previously issued government resolution, while also creating a legal basis for flexible policy adjustments as the digital asset market develops further.
