#What is the New Tax Proposal for Crypto in Vietnam?
Vietnam's Ministry of Finance has proposed a new regulation that introduces a 0.1% personal income tax on cryptocurrency transactions. This tax will apply to transactions conducted through licensed platforms, bringing digital assets in line with the taxation of stocks. Both residents and non-residents, including foreign investors, will be subject to this tax on the total transaction value.
How Does the Regulation Aim to Control the Crypto Market?
This move is part of a comprehensive five-year pilot program launched in September 2025, which aims to regulate the rapidly evolving cryptocurrency market in Vietnam. Historically, this market has existed in a legal gray area, making regulation essential for fostering a secure trading environment. Licensing applications were opened on January 20, 2026, with firms required to meet specific criteria. For instance, a minimum capital of 10 trillion VND—approximately $408 million—must be maintained, and foreign ownership is capped at 49%.
What Benefits Does the New Regulation Offer?
Under this new framework, cryptocurrency transactions will be exempt from value-added tax, providing a smoother operational landscape for companies involved in crypto trading. Additionally, firms that engage in crypto activities will pay a 20% corporate income tax on their net profits derived from transfers. This structure could enhance compliance and promote transparency within the industry.
What Concerns Might Arise from the High Entry Barriers?
Despite the seemingly attractive low tax rate aimed at boosting compliance, analysts warn that the stringent capital requirements for exchanges might hinder the number of license applications. This situation could ultimately limit market liquidity and reduce competition among crypto service providers.