The proposal, drafted by the Vietnam Ministry of Finance, would impose a flat 0.1% personal income tax on every cryptocurrency transfer executed by individual traders through licensed platforms.
The suggested tax reform, initially introduced by the center-left Social Democratic Party (SPD), aimed to eliminate a one-year tax exemption on crypto gains and raise the flat tax on private capital income to 30%. The idea was to align taxation on digital assets with that of traditional financial instruments like stocks, which are currently taxed more stringently.
Market analysts suggest that the proposed tax exemptions could enhance Hong Kong's appeal as an offshore financial center, encouraging liquidity inflows into the city.
Under the amendments, cryptocurrencies will be classified as property for tax purposes. Income generated from mining activities will be taxed based on the market value of the mined cryptocurrency at the time of receipt.
