Vietnam Proposes 0.1% Tax on Cryptocurrency Transactions

Vietnam's Ministry of Finance has released draft tax regulations for cryptocurrency transactions that would impose a 0.1% levy on individual investors trading digital assets through licensed platforms, according to a circular published for public comment on Feb. 6.

The proposed framework treats cryptocurrency taxation similarly to securities trading, exempting crypto transfers from value-added tax while applying transaction-based levies to individual traders and corporate income tax to Vietnamese businesses.

Under the draft rules, individual investors would pay 0.1% personal income tax on the revenue from each cryptocurrency transfer, regardless of whether they are Vietnamese residents or foreign nationals. The rate matches Vietnam's current tax on stock transactions.

Vietnamese corporations trading cryptocurrencies would face 20% corporate income tax on profits from digital asset activities, calculated as the sale price minus purchase costs and transaction expenses. Foreign corporations operating through Vietnamese platforms would pay the 0.1% transaction levy on transfer values rather than the higher corporate rate.

The ministry defined crypto assets as digital assets using encryption or digital technology for authentication during creation, issuance, storage and transfer, according to English language daily Viet Nam News, which reported on the proposal.

Cryptocurrency transfers and trading conducted on licensed platforms would not be subject to value-added tax under the draft framework. The VAT exemption follows approaches adopted by Thailand, Indonesia and other jurisdictions that treat digital currencies as financial instruments rather than taxable goods or services.

The tax proposal aligns with Vietnam's five-year pilot program for digital asset regulation that began in September 2025. Under the pilot, all cryptocurrency offerings, issuance, trading and payments must be conducted in Vietnamese dong.

Vietnam has not previously maintained a formal tax framework for cryptocurrency transactions, leaving uncertainty around whether digital asset transfers constituted taxable supplies. The draft circular aims to clarify tax treatment as the country develops regulated markets for crypto trading.

The 0.1% transaction tax on individuals represents a turnover-based levy calculated on gross transaction value rather than capital gains, reducing compliance complexity compared to profit-based tax calculations. However, the approach means investors pay tax regardless of whether trades generate profits or losses.

The draft does not address several operational questions, including tax treatment of cryptocurrency mining, staking rewards, or decentralized finance activities. The framework also does not specify how wallet-to-wallet transfers outside licensed platforms would be taxed or whether crypto service providers would have withholding obligations.

Foreign institutional investors using Vietnamese-licensed service providers would be subject to the same 0.1% transfer tax as individuals, creating parity between domestic and international participants operating through regulated platforms.

The ministry has opened the draft circular for public feedback but has not specified a timeline for finalizing the regulations or when they would take effect. Implementation would depend on development of the licensed platform infrastructure contemplated under Vietnam's digital asset pilot program.

Vietnam's crypto market has grown rapidly despite the absence of formal regulations, with adoption rates rising in recent years as investors seek alternatives to traditional banking and remittance channels. The country ranked among the top 20 globally for cryptocurrency adoption in several industry surveys.

The proposed tax framework represents Vietnam's attempt to establish regulatory clarity for digital assets while generating revenue from a growing market. However, the success of the regime will depend on enforcement mechanisms and whether traders migrate activity to unlicensed platforms to avoid taxation.