Vietnam's Crypto Taxes: 20% CGT on Profits, 10% VAT on Fees by 2025

Vietnam has emerged as a vibrant hub for cryptocurrency, with a significant portion of its population investing in digital assets like Bitcoin and Ethereum. The appeal lies in the swift and efficient way cryptocurrencies can navigate inflation, stabilizing the Vietnamese currency Dong. However, understanding the tax implications and regulatory framework is crucial for traders, as non-compliance can lead to legal repercussions.

The General Department of Taxation, under the Ministry of Finance, oversees crypto taxation in Vietnam. This department collaborates with the State Bank of Vietnam and the Ministry of Justice to establish comprehensive regulations. By May 2025, a new set of laws is expected to clarify the existing confusion surrounding crypto taxes, which have been a source of uncertainty for years. According to the 2015 Civil Code and Commercial Law 2005, cryptocurrencies are not considered legal tender but are classified as "assets" or "goods." This classification means that taxes are applicable when profits are made from crypto activities.

Vietnam imposes several types of taxes on cryptocurrency activities. Capital Gains Tax (CGT) is levied when cryptocurrencies are sold for a profit, such as trading Bitcoin for Vietnamese dong. Income tax applies to earnings from mining, staking, airdrops, or receiving payments in cryptocurrency. A 10% Value-Added Tax (VAT) is applied to fees from crypto exchanges or services, but not to the cryptocurrencies themselves. Currently, there is no wealth or inheritance tax on cryptocurrencies, although this could change as laws evolve.

The tax rates in Vietnam are structured as follows: Capital Gains Tax is set at 20% on profits from selling cryptocurrencies for both individuals and businesses. Income tax on crypto earnings follows Vietnam’s personal income tax brackets, ranging from 5% for low earners to 35% for high earners, while companies pay a flat 20%. Individuals are exempt from tax on the first VND 10 million of gains, and losses can sometimes reduce the tax owed.

Different types of crypto transactions are subject to varying tax treatments. Buying cryptocurrency with dong is not taxed, but selling it for a profit triggers a 20% CGT. Mining and staking rewards are taxed as income based on their value in dong when received. Crypto payments for work or goods are taxed as income based on their market rate in dong. Trading one cryptocurrency for another, such as Bitcoin for Ethereum, incurs CGT if there is a profit. DeFi earnings from lending or yield farming are taxed as income when earned. NFT sales are subject to CGT if they result in a profit, with no special exemptions currently available.

In Vietnam, individuals and businesses must report their crypto earnings to the General Department of Taxation using online tools or local tax offices. Individuals file under Personal Income Tax (PIT) rules, while businesses follow Corporate Income Tax (CIT) guidelines. Detailed records of every trade, including dates, amounts, and dong values, must be maintained and can be sourced from wallets or exchanges. The deadline for filing is annually on March 31 for individuals and quarterly for businesses. Failure to meet these deadlines can result in fines starting at VND 2 million or 2% of the unpaid tax, plus interest.

Taxpayers can reduce their tax burden through various deductions and exemptions. Losses from crypto trades can offset taxable gains, provided they are reported in the same year. Businesses can deduct expenses such as mining equipment or platform fees from their income tax. Everyone is entitled to a VND 10 million CGT exemption each year. Maintaining clear records is essential to claim these benefits and avoid disputes with tax authorities.

The General Department of Taxation is enhancing its enforcement capabilities in 2025, utilizing blockchain tracking and exchange data to identify tax evaders. KYC rules on platforms assist in monitoring transactions, although peer-to-peer trades pose a greater challenge. Non-compliance with tax obligations can result in fines ranging from VND 2 million to VND 25 million, depending on the severity of the evasion, plus interest at 0.03% per day late. Severe cases of tax evasion may lead to jail time, especially in the wake of high-profile crypto scams that have prompted stricter government oversight.

Vietnam's crypto tax landscape is poised for further changes in 2025. The new framework expected in May may adjust CGT rates or introduce new regulations for DeFi and NFTs, aiming to balance growth with control. The government seeks to capitalize on the crypto boom without deterring users. In the future, tax incentives for blockchain startups could be introduced to foster the digital economy.

In summary, Vietnam's crypto taxes in 2025 include a 20% CGT on profits, income tax on earnings, and a 10% VAT on service fees, all overseen by the General Department of Taxation. Keeping meticulous records and filing on time are essential to avoid fines. As regulations become more defined, consulting with a tax professional can help traders and investors navigate the legal landscape while maximizing their crypto investments.