In an opinion piece in the Vietnam Investment Review, Nguyen Tien Hoa, Senior Partner at ASL Law, has argued that taxing crypto assets in Vietnam is legally feasible but requires foundational legal clarity and a phased implementation.
He goes on to make the following points:
- Legal classification is key: Taxation depends on how crypto assets are defined—whether as property, goods, or services. Current law does not yet recognise them clearly as any of these.
- Personal and corporate tax options: Once classified, profits from crypto trading could face 10 percent personal income tax, while businesses could be taxed at the 20 percent corporate rate.
- VAT conditionality: Value-added tax would only apply if crypto is formally recognised as a good or service, which is not currently the case in Vietnam.
- Recommended approach: Begin with a low fixed-rate tax to foster voluntary compliance and pilot a tax regime on selected centralised exchanges.
- Legal consistency first: Clear definitions are essential to ensure enforceability, fairness, and alignment with Vietnam’s existing tax laws.
Notably, digital assets have proved popular in Vietnam for a range of reasons so a tax could create a small financial windfall for the government. However, part of the appeal of crypto assets is that low cost of moving funds around, particularly into and out of the country. A tax would increase this cost and may make these assets less attractive.
See also: Why Cryptocurrency in Vietnam Is So Popular: Unpacked