Digital assets and cryptocurrencies will be taxed.

The Ministry of Information and Communications is seeking feedback from relevant ministries, agencies, and units to finalize the draft Law on Digital Technology Industry. Notably, this draft law addresses the issue of digital assets, aiming to create a legal framework for a rapidly developing field.

Transactions exceeding $100 billion.

The government has assigned relevant ministries and agencies to finalize the legal framework for digital assets and cryptocurrencies (also known as virtual assets or virtual currencies), with a deadline of May 2025.

Establishing a legal framework is one of the actions included in the national action plan to fulfill the Vietnamese Government's commitments on combating money laundering, terrorist financing, and the financing of weapons of mass destruction proliferation. On the other hand, with the rapid development of digital assets and cryptocurrencies, the need for a legal framework is becoming increasingly urgent. Although not yet officially recognized, the ownership and trading of digital assets and cryptocurrencies are quite common in Vietnam.

A recent report by CryptoCrunchApp shows that Vietnam ranks 3rd in the world in terms of the number of cryptocurrency holders (after India and the US). Mr. Phan Duc Trung, Permanent Vice President of the Vietnam Blockchain Association, stated that in 2022, the inflow of digital assets into the Vietnamese market was approximately $100 billion USD. This figure is projected to reach around $120 billion USD in 2023 and is forecast to grow strongly in 2024.

Currently, trading and investing in digital assets and cryptocurrencies is quite common through international exchanges.

Mr. Le Viet Cuong (residing in Cau Giay District, Hanoi ) - a cryptocurrency owner - stated that trading and investing in cryptocurrencies is currently quite easy through international exchanges. Buying and selling cryptocurrencies typically uses peer-to-peer (P2P) transactions. As digital assets and cryptocurrencies develop strongly, buying, selling, and investing in them are becoming increasingly common. The issue of a legal framework to address ownership claims, disputes, and especially tax management is becoming increasingly urgent.

The draft Law on Digital Technology Industry clearly states that digital assets and digital currencies are digital technology products created, issued, stored, transferred, and whose ownership is verified using blockchain technology, and which individuals have the right to own according to the provisions of civil law and related laws. Thus, the draft law has addressed the issue of ownership of this type of asset.

Tax administration is necessary.

The draft Law on Digital Technology Industry proposes that the Ministry of Finance take the lead, in coordination with other ministries and agencies, in issuing or developing and submitting to competent authorities regulations on the management of digital assets and the organization of digital asset service providers.

Mr. Truong Ba Tuan, Deputy Director of the Department of Tax, Fee and Charge Policy Management and Supervision (Ministry of Finance), acknowledged that in the process of perfecting the legal framework, it is necessary to define what digital assets are; their legal status and how to manage them. The Ministry of Finance will work with other ministries and agencies to do this, including perfecting tax policies on digital assets.

In the case of digital assets and digital currency being considered a type of asset, the current Civil Code does not regulate this matter, therefore it needs to be reviewed. Mr. Truong Ba Tuan believes that if digital assets are regulated in the Law on Digital Technology Industry, it will initially provide a basis for implementing tax laws for entities participating in business and transferring this type of asset.

Highlighting the strong activity in trading and investing in digital assets and cryptocurrencies in recent times, Dr. Le Dang Doanh, former Director of the Central Institute for Economic Research and Management (CIEM), expressed concern that we lack a legal framework to manage taxation, leading to revenue losses in recent years. This is an irreversible trend as technology continues to develop.

Dr. Le Dang Doanh believes that the task of building a legal framework for digital assets is crucial to both ensure effective state management and promote the development of this sector, while also protecting market participants.

Given that many people own digital assets and earn income from them, Mr. Dau Anh Tuan, Deputy Secretary General of the Vietnam Chamber of Commerce and Industry (VCCI), emphasized that they have a responsibility to pay taxes; the state needs to manage and collect taxes. However, applying management policies will also face certain difficulties, as it is necessary to define what constitutes a digital asset.

Mr. Dau Anh Tuan believes that Vietnam needs to learn from the experiences of other countries to approach this step by step. "When practice shows that this is a great need and relatively common, it's time for us to have a legal framework and implement tax management and collection on digital assets and cryptocurrencies," Mr. Dau Anh Tuan stated.

Developing tax policies requires careful consideration.

According to Mr. Phan Duc Trung, digital assets, when regulated in the Law on Digital Technology Industry, will serve as a basis for improving other policies, including taxation.

Regulations on taxation of digital assets need to be carefully studied and considered, and implemented step by step based on practical experience. Mr. Trung believes that tax management ensures state management and prevents revenue loss, but it is also necessary to create conditions for businesses to develop, given the enormous potential of this sector.

Source: https://nld.com.vn/se-danh-thue-tai-san-so-tien-so-196240825211740646.htm