0.1 per cent tax proposed on each transfer of digital assets

0.1 per cent tax proposed on each transfer of digital assets

Individuals transferring digital assets via platforms operated by licensed service providers may be subject to a 0.1 per cent tax on turnover for each transaction, according to a draft circular released by the Ministry of Finance for public consultation.

Photo: tinnhanhchungkhoan.vn

The ministry is currently seeking feedback on a draft circular outlining tax policies for the transaction, transfer, and trading of digital assets. Under the proposal, the transfer and trading of digital assets would fall outside the scope of VAT.

However, individual investors, regardless of residency status, would be liable for personal income tax at 0.1 per cent of the transfer value per transaction, mirroring the tax treatment applied to securities trading.

For organisations established in Vietnam that earn income from digital asset transfers, corporate income tax would be levied at 20 per cent. Taxable income would be calculated as the selling price minus the purchase price and any costs directly related to the transfer.

Digital assets are defined as a form of digital property that uses cryptographic or digital technologies for authentication during creation, issuance, storage, and transfer.

Vietnam’s digital asset market is undergoing a pilot until September 2030. During the pilot phase, the offering, issuance, trading, and settlement of digital assets must be conducted in VND.

Prior to the introduction of a dedicated tax framework, income from the transfer and trading of digital assets has been taxed in a manner similar to securities transactions.

The pilot market will cover activities including the offering and issuance of digital assets, the organisation of trading platforms, and the provision of related services. The trial is to be implemented on a cautious, controlled, safe, and transparent basis, with an emphasis on protecting the lawful rights and interests of participating organisations and individuals.

Under the proposed regulations, enterprises seeking to establish a digital asset exchange would be required to have a minimum charter capital of $400 million, three times that required for a commercial bank and around 33 times that of an aviation transport company. Foreign investors would be permitted to hold up to 49 per cent of charter capital.

VIR