New Proposal: Personal Income Tax On Digital Assets
The Ministry of Finance of Vietnam is taking a significant step to complete the legal framework for the digital asset market by proposing to add income from digital asset transfers to the scope of personal income tax (PIT).
Timing and Objectives of the Proposal
This proposal was presented by Deputy Minister of Finance Cao Anh Tuan at the 50th session of the National Assembly Standing Committee on the afternoon of October 13, 2025. The objective is to include income from digital asset transfers, including virtual assets and crypto assets, in the PIT taxable income group, expected to take effect from October 14, 2025.
Proposed Tax Rate and Calculation Method
The Ministry of Finance proposes a tax rate of 0.1% on the transfer value of each transaction for digital assets traded on transparently managed exchanges. This tax calculation method is similar to the tax rate currently applied to securities transfers.
A notable point is that this is a transaction tax, meaning individuals will have to pay tax on the total transaction value, regardless of whether the transaction results in a profit or a loss. This has sparked much debate within the community and among experts.
Legal Basis and Definition of Digital Assets
To lay the groundwork for management and taxation, Vietnam has made significant progress in recognizing and defining digital assets.
Digital Technology Industry Law 2025 and "Digital Assets"
The Digital Technology Industry Law, passed by the National Assembly on June 14, 2025, and effective from January 1, 2026, is a crucial legal document as it officially recognizes "digital assets" as assets under civil law for the first time. According to Article 46 of this Law, a digital asset is defined as an asset under the Civil Code, represented as digital data, created, issued, stored, transferred, and authenticated by digital technology in an electronic environment.
Market Potential and Budget Revenue Opportunities
Vietnam is considered a large potential market for digital assets, offering significant opportunities for increasing state budget revenue.
Vietnam: A Vibrant Crypto Market
According to Chainalysis reports, Vietnam is one of the leading countries in cryptocurrency adoption and interest, ranking 5th globally in interest level and 3rd in the use of international trading platforms. An estimated 17 million Vietnamese people own cryptocurrencies, with a total market value exceeding $100 billion.
If a 0.1% tax rate were applied to this transaction volume, the Ministry of Finance estimates that the state budget could collect over $800 million annually, a significant figure.
Government Objectives for Imposing the Tax
The proposed digital asset tax is not just a financial move but also part of Vietnam's comprehensive digital economy development strategy. Key objectives include:
Completing the Legal Framework: This is a crucial step in the roadmap to finalize a robust legal framework for managing the digital asset market in Vietnam.
Generating Budget Revenue: Tapping into the significant economic potential of the digital asset market to supplement the nation's growing revenue streams.
Ensuring Fairness and Transparency: Bringing this economic activity into the official system, ensuring tax fairness across sectors, and fostering a more transparent digital economy.
Keeping Pace with International Trends: Many countries worldwide have adopted taxes on digital assets, aligning Vietnam with global management trends.
Challenges and Diverse Perspectives
Despite numerous benefits, the proposed digital asset tax also faces considerable challenges and has received diverse opinions from the community and experts.
Concerns Regarding Transaction Tax
Applying tax on the transfer value (turnover) without distinguishing between profit and loss has caused significant debate. Experts and major exchanges like Binance express concerns that this calculation method could reduce domestic market liquidity, encourage investors to shift to unregulated international exchanges or P2P (peer-to-peer) transactions, thereby reducing actual revenue for the domestic market.
Proposed Alternative Solutions
To address these concerns, some expert opinions have suggested alternative approaches, including:
Applying a capital gains tax of approximately 20%, similar to many developed financial markets.
Implementing a tax rate schedule based on asset holding periods (short-term/long-term) to encourage long-term investment and minimize speculative trading.
Challenges in Practical Implementation
Implementing digital asset taxation also poses numerous technical and administrative challenges. These difficulties include:
Cost Basis Determination: Calculating the cost basis for various digital assets is complex.
Income Recognition Timing: For activities like mining, staking, or airdrops, determining the exact moment income arises for tax calculation is a difficult issue.
Inconsistent Exchange Rates: Fluctuations in exchange rates between digital assets and fiat currency can complicate accurate tax calculation.
P2P Transaction Monitoring: Managing and monitoring P2P transactions that occur outside centralized exchanges is a significant challenge.
Demand for a Transparent Tax Roadmap
Experts emphasize the need for a transparent, flexible, and balanced tax roadmap. This roadmap must both encourage innovation in the digital technology sector and ensure effective management and fair tax collection, without hindering market development.
Other Related Policies Under Discussion
In addition to the digital asset tax proposal, the Vietnamese Government is also implementing and considering various other policies to reshape the digital and financial economic environment.
Pilot Program for Crypto Asset Market
On September 9, 2025, the Government issued Resolution No. 05/2025/NQ-CP on piloting a crypto asset market in Vietnam for 5 years. This resolution sets stringent conditions for service providers, such as a minimum charter capital of VND 10,000 billion and a foreign ownership limit of 49%. This is a cautious but necessary step to test the management model before widespread implementation.
Other Taxable Personal Income
The draft revised Personal Income Tax Law also proposes adding income from gold bullion transfers and winning bids for car license plates to the taxable income group. This is also receiving much feedback, especially concerning gold bullion, to avoid burdening individuals who buy and sell for non-speculative purposes.
Changes in Tax Management for Business Households
Another notable change is that from January 1, 2026, the lump-sum tax mechanism for business households will be abolished. Instead, business households will be required to self-declare and pay taxes based on actual revenue generated, depending on their annual revenue threshold. This aims to enhance transparency and fairness in the tax system.
These comprehensive changes demonstrate the Vietnamese Government's strong commitment to building a tightly managed, transparent, and efficient digital financial system. Simultaneously, this is an effort to harness the development potential of new asset types in the digital economy, moving towards a more sustainable and prosperous digitized future.
The content above reflects the author’s personal views and does not represent any official position of Cobic News. The information provided is for informational purposes only and should not be considered as investment advice from Cobic News.