Vietnam Moves to Tax Crypto Like Stocks
Vietnam plans a 0.1% tax on crypto transactions with no VAT, treating digital assets like stocks under a new regulatory framework to boost compliance.
With a proposed regulatory framework, Vietnam is taking proactive measures to change the way cryptocurrencies integrate into its financial system. Similar to what investors currently pay on stock trades, the plan would impose a 0.1% personal income tax on each transaction made by anyone trading or transferring digital assets on regulated platforms.
Additionally, the proposal seeks to exclude value-added tax (VAT) from cryptocurrency transactions and categorize digital assets as securities for tax purposes. All of these adjustments are a part of a larger initiative to give Vietnam's quickly expanding cryptocurrency market a more regulated, transparent, and understandable framework.
Proposed Tax Rules
Vietnam is suggesting a straightforward tax on cryptocurrency transactions. The idea calls for a 0.1% levy to be applied to all bitcoin transactions on approved platforms, regardless of whether the investor is domestic or foreign. Treating digital assets in the same manner as regular securities is intended to simplify the management of crypto taxes.
Additionally, by eliminating VAT on Bitcoin transactions, the proposal lowers the overall tax burden and supports the notion that cryptocurrency is being viewed more as a financial asset than a consumer good.
Following the deduction of purchase costs and associated charges, enterprises and institutional investors would be subject to 20% corporate income tax on gains from cryptocurrency transfers. On the other hand, individual investors would pay taxes directly according to the amount of each transaction.
Regulatory Framework
These new tax laws are a component of a larger initiative to provide cryptocurrency trading more stringent regulation and transparent licensing. The draft framework from Vietnam sets a high standard for businesses looking to run digital asset exchanges.
In order to be eligible for a license, businesses would need to have at least 10 trillion Vietnamese dong (about $408 million) in charter capital. In order to maintain domestic control over important financial infrastructure, there would also be a 49% cap on foreign ownership.
All of this is related to a five-year trial program for a regulated cryptocurrency market that began operations in September 2025. Everything must be done in Vietnamese dong during this trial period, including issuing and exchanging digital assets and completing transactions. The intention is to promote a more transparent and secure environment for service providers and investors by establishing clear regulations and robust protections.
No VAT on Crypto
The decision in the proposed framework to remove cryptocurrency transactions from value-added tax (VAT) is one of its most notable features. Vietnam's decision to eliminate VAT on trades in digital assets is a step toward acknowledging cryptocurrencies as financial instruments rather than taxable products or services.
In certain sophisticated financialmarkets, where transactions are also VAT-exempt, this is similar to how securities are handled. Additionally, it demonstrates Vietnam's goal to reduce transaction costs and promote trading on regulated platforms.
Vietnam may have an advantage over nations that still impose VAT on cryptocurrency activity as a result of this exemption, particularly for regular traders or high-volume investors who would otherwise have to cope with intricate VAT calculations for each transaction.
Exchange Licensing Push
In addition to tax ideas, the new crypto framework introduces stringent licensing guidelines designed to safeguard investors and maintain market stability. High capital thresholds, restrictions on foreign ownership, and strong charter capital rules are just a few of the stringent conditions that must be met by any business hoping to run a digital asset exchange.
This strategy demonstrates that stability and openness are more important to Vietnam than the unbridled, fast expansion of the cryptocurrency industry. Instead of welcoming everyone, the government seems to be concentrating on creating a robust and resilient market system.
Vietnam is attempting to achieve a careful balance between promoting innovation in digital finance and maintaining oversight in line with the standards used in traditional financial markets by treating digital assets more like equities in both regulation and taxation.
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