Vietnam’s Ministry of Finance has unveiled a draft tax framework aimed at formalizing taxation for cryptocurrency transactions, aligning digital assets more closely with traditional securities trading in the country. If adopted, the proposal could reshape how individuals and institutions are taxed on crypto transfers and trading activities.
Draft Tax Proposal Overview
The draft circular, released for public consultation, outlines a comprehensive tax regime for crypto asset transfers and trading that would be implemented through licensed service providers operating in Vietnam’s regulated digital asset market.
Key Tax Provisions
- 0.1% Personal Income Tax:
Individuals — whether Vietnamese residents or non-residents — transferring crypto assets, such as Bitcoin, Ethereum, and other tokens, through licensed platforms would be required to pay a 0.1% personal income tax on the turnover value of each transaction. This treatment mirrors the tax imposed on securities trading under existing Vietnamese tax rules. - VAT Exemption:
Transfers and trading of crypto assets would be exempt from Value-Added Tax (VAT), reflecting the government’s intent to align digital asset turnover with capital markets rather than goods or services. - Corporate Tax for Institutional Investors:
Corporate entities established in Vietnam that generate income from the transfer of digital assets would be subject to the standard 20% corporate income tax (CIT) on net profits. Profit is defined as the selling price minuspurchase cost and directly related transaction expenses. - Foreign Corporate Investors:
Institutional investors incorporated outside Vietnam may face a 0.1% corporate tax on turnover value, similar to the personal income tax applied to non-resident individuals.
Background: Crypto Regulation and Pilot Market
This draft tax framework is part of Vietnam’s broader effort to regulate and integrate digital assets into its financial ecosystem during a five-year pilot program which began in September 2025. The initiative requires all offerings, issuance, trading, and settlement of digital assets to be conducted in Vietnamese đồng (VND).
The Ministry of Finance has defined “crypto assets” as digital assets that use cryptographic or similar technologies for creation, storage, and transfer verification.
Market and Policy Context
Vietnam has moved cautiously in its approach to digital assets; the pilot market is designed to balance innovation with investor protection and financial stability. Local outlets have noted high regulatory requirements for digital asset exchanges, including substantial charter capital and limits on foreign ownership, which some analysts say may deter participation in the early stages.
The proposed tax measures reflect a government strategy to formalize the crypto sector while generating revenue and reducing ambiguity that has historically surrounded digital asset taxation. Although stakeholders have not yet reached a consensus, the draft represents a significant step toward integrating cryptocurrency into Vietnam’s broader financial and tax framework.
Next Steps
The Ministry of Finance is currently gathering public feedback on the draft circular. After the consultation period closes, the government may revise the proposal before it becomes enforceable law.
