The Ministry of Finance has just issued a Circular guiding taxes on transactions, transfers and trading of encrypted assets within the framework of the pilot program of the encrypted asset market in Vietnam under Resolution No. 05.
According to regulations, the transfer and business of encrypted assets belongs to the group not subject to value-added tax.
For individual investors, income from the transfer of encrypted assets through service providers is subject to personal income tax. The tax is calculated at a rate of 0.1% on the transfer price each time. This regulation applies to all individual investors, regardless of whether the individual resides or does not reside.
This tax rate is equivalent to the tax calculation method for securities transactions. Previously, the management agency had proposed tax calculation on the revenue of each transaction, but the State Bank said that the draft has not clarified the method of determining revenue for each transaction, especially for foreign organizations and individuals participating in the market.
For institutional investors, income from the transfer of encrypted assets is subject to corporate income tax at a tax rate of 20%. Taxable income is determined by selling price minus purchase price and expenses related to the transfer with invoices and documents as prescribed.
This regulation also applies to businesses. However, the 20% tax rate does not apply to businesses with total annual revenue of less than 3 billion VND and from over 3 billion VND to no more than 50 billion VND. If falling into these two cases, businesses will pay taxes of 15% and 17% respectively according to the provisions of the Law on Corporate Income Tax.
Separately, foreign institutional investors with activities of transferring encrypted assets through service providers will pay corporate income tax at a rate of 0.1% on each transfer revenue.
According to the Ministry of Finance, the issuance of the Tax Guidance Circular aims to improve the legal basis and determine the responsibilities of investors before entering the pilot phase of cryptocurrency trading. This is considered one of the fundamental regulations in completing the legal framework for digital assets, towards building a transparent and controlled market.
According to the Government's orientation, in the initial phase, up to 5 enterprises will be piloted to establish a cryptocurrency exchange to control risks and assess impacts before expanding the market. Enterprises participating in the pilot must have a minimum charter capital of 10,000 billion VND. Foreign investors are allowed to hold a maximum of 49% of capital.
According to a document sent to the Ministry of Public Security and the State Bank of Vietnam for comments on March 12, the Ministry of Finance said that there are 5 complete and valid dossiers registered to participate in providing encrypted asset services.
