Vietnam Considers Flat 0.1% Tax on Crypto Transactions Under Securities-Style Framework

• Vietnam’s Ministry of Finance has proposed a flat 0.1% personal income tax on every cryptocurrency transfer made by individuals, applying the levy to transaction value rather than profits.
• Under the draft framework, crypto transfers would be exempt from value-added tax, while companies trading crypto would be subject to a 20% corporate income tax on net profits.
• The proposal forms part of Vietnam’s five-year crypto market pilot, which restricts trading to licensed platforms and aims to bring oversight to a largely unregulated retail market.

Vietnam is weighing a new approach to regulating cryptocurrency trading that would bring digital assets firmly into the country’s tax framework, according to reports cited by the Vietnam Investment Review.

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 tax would apply to the gross value of each transaction, regardless of whether the trade results in a profit or a loss, mirroring Vietnam’s existing tax treatment of stock market trades.

If adopted, the model would prioritize administrative simplicity over profit-based calculations, ensuring that tax is collected on a per-transaction basis rather than through capital gains reporting. Under the draft, licensed exchanges would be responsible for withholding and remitting the tax on behalf of users.

Institutional participants would face a different regime. Companies earning income from crypto transfers would be subject to 20% corporate income tax on net profits, calculated after deducting acquisition costs and directly related expenses such as trading fees. The distinction effectively places retail traders under a flat transactional levy, while businesses are assessed under standard corporate accounting rules.

Notably, the draft framework would exempt cryptocurrency transfers from value-added tax, classifying them as financial services rather than taxable goods or consumer services. This exemption removes the risk of double taxation and aligns crypto transactions more closely with traditional financial instruments, a move likely to be welcomed by high-frequency and professional traders.

The tax proposal forms part of a broader five-year crypto market pilot program launched in September 2025. Under the pilot, crypto trading is restricted to licensed platforms, and all settlements must be conducted in Vietnamese dong. Exchanges seeking approval face strict entry requirements, including a minimum charter capital of 10 trillion Vietnamese dong, equivalent to roughly $408 million, as well as a 49% cap on foreign ownership.

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According to the Vietnam Investment Review, the government is positioning the initiative as an effort to introduce transparency and regulatory oversight to a market that already has significant retail participation but has long operated in a legal gray area. By taxing crypto transactions like equities, policymakers appear to be aiming for a balance between enforcement and accessibility, using low rates to encourage compliance rather than drive activity offshore.

Public consultation on the draft circular is currently underway, and officials are expected to revise the framework before final adoption. If implemented, the proposal would place Vietnam among a small but growing group of jurisdictions in Southeast Asia pursuing structured, transaction-based taxation of crypto trading.

Rather than focusing on ideological debates around digital assets, the draft reflects a pragmatic stance: treating crypto as a taxable financial activity, monitored through licensed intermediaries and integrated into existing fiscal systems. The outcome of the consultation process will determine whether Vietnam’s approach becomes a model for other emerging markets navigating the transition from informal crypto adoption to regulated participation.

Editorial Note: This news article has been written with assistance from AI. Edited & fact-checked by the Editorial Team.

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