The Ministry of Finance has just released a report on the acceptance and explanation of comments on the draft Circular guiding the declaration, deduction, payment, and settlement of taxes on the cryptocurrency market . One of the notable contents is the method of calculating tax on transfer transactions.
Previously, the draft regulation stipulated a 0.1% deduction on revenue from each cryptocurrency transaction in Clause 2, Article 4. However, the State Bank of Vietnam (SBV) argued that this regulation did not clarify how revenue was determined, especially for foreign organizations and individuals.
Taking feedback into account, the Tax Department has removed the detailed regulation on revenue for each transaction, replacing it with the general provisions of current tax law – a mechanism similar to that of securities.
Essentially, the adjustment does not change the tax obligation : Investors still pay 0.1% on the sales value, and the service provider (such as the exchange) will deduct and pay it on their behalf. The main purpose of the adjustment is to:
- Clarify how revenue is determined, avoiding difficulties in application;
- Ensure consistency with the existing tax system;
- No new procedures, documents, or forms will be required.
Traders' hopes dashed: Crypto tax remains at 0.1%!
No penalties were included in the Circular.
In its comments on the draft Circular, the Ho Chi Minh City Tax Department proposed adding enforcement measures in tax management for organizations and individuals providing services and transferring crypto assets.
Regarding this matter, the Tax Department stated that the State Securities Commission (SSC) is currently leading the development of a Decree on penalties related to crypto assets. Based on that, the penalties for violations, as well as the enforcement measures, will be implemented according to the Decree on penalties.
Regarding violations of tax regulations, they will be handled in accordance with the Law on Tax Administration and relevant current guiding documents corresponding to the violation.
News summary.
