Vietnam tops the world in crypto adoption rates with 20% of its population holding crypto and trending crypto. Such high rates of crypto ownership come from no taxation, high unbanked population and volatile price rates. Crypto tax in Vietnam has been researched and pondered since 2017 in Vietnam, although no tax regime or regulations have been set up.
Do you have to pay crypto tax in Vietnam?
While swapping and transferring crypto is not taxable, encashment or liquidating your crypto assets and gains from selling crypto will be subject to taxes. Vietnam follows a different tax regime than other countries where it levies taxes based on employment and non-employment income. Since cryptocurrency is not recognised as legal tender and no regulations have been set up, it is a gray area as to how crypto will be taxed.
When do you have to pay tax on crypto in Vietnam?
Selling crypto for a profit and converting your crypto into fiat,will be taxable as non-employment income.
What crypto transactions are taxable in Vietnam?
- Selling crypto with a profit.
- Converting crypto into fiat.
What are the Crypto Tax Rates in Vietnam?
Under non employment business income, tax rates on crypto in Vietnam range from 0.5% to 5%, with the rates varying on the type of business. Although, due to lack of clarity on crypto and no regulations, it is difficult to fathom under which bracket would crypto lie.
BUSINESS INCOME TAXES
| Type of taxable income | Tax rate (%) |
| Distribution and supply of goods | 0.5 |
| Services, construction without provision of raw materials | 2.0 |
| Lease of assets | 5.0 |
| Production, transport, services attached to goods, construction including provision of raw materials | 1.5 |
| Other business operations | 1.0 |
* Individuals earning business income from VND 100 million per calendar year and below shall not be subject to PIT on their business income.
Vietnam Income Tax Brackets (2023)
EMPLOYMENT INCOME TAX RATES
| Annual taxable income (million VND*) | Monthly taxable income (million VND) | PIT rate (%) |
| 0 to 60 | 0 to 5 | 5 |
| 60 to 120 | 5 to 10 | 10 |
| 120 to 216 | 10 to 18 | 15 |
| 216 to 384 | 18 to 32 | 20 |
| 384 to 624 | 32 to 52 | 25 |
| 624 to 960 | 52 to 80 | 30 |
| More than 960 | More than 80 | 35 |
NON EMPLOYMENT INCOME TAX RATES
| Type of taxable income | Tax rate (%) |
| Business income | 0.5 to 5 |
| Interest (but not bank interest)/dividends | 5 |
| Sale of shares | 0.1 (of sales proceeds) |
| Capital assignment | 20 (on net gain) |
| Sale of real estate | 2 (of sales proceeds) |
| Income from franchising/royalties | 5 |
| Income from inheritances/gifts/winning prizes (excluding income from casino winning prizes) | 10 |
How is Tax Calculated on Cryptocurrency in Vietnam?
Gains from selling crypto or liquidating crypto are taxed in Vietnam. In order to calculate the profit, you need to figure the cost price of your crypto holdings that may have been bought at different points of time but being sold together. To do so, there are two methods used globally: FIFO (First In First Out) and ACB (Average Cost Based):
According to FIFO Method, you sell your oldest acquired coin first and cost is calculated according to the respective prices at which the coin was bought. Whereas, in ACB, time of buying doesnt matter and average cost is taken into account.
Let’s take an example,
Say you bought 2 BTC for VND 20,000 in 2020 and 4 BTC for VND 60,000 in 2021. Then you sold 4 BTC in 2022 for VND 1,00,000:
- FIFO METHOD
You sell 2 BTC from 2020 and 2 BTC from 2021. So cost price is:
= 20,000 + (2/4)*60,000
= VND 50,000
Profit = 1,00,000 – 50,000
= 50,000
Here, taxes are levied on VND 50,000 .
- ACB METHOD:
All coins are of the same denomination. Therefore, cost price for one coin:
= (20,000 + 60,000)/6
= VND 13,333
So, cost price of 4 coins:
= VND 53,333
Profit = 1,00,000 – 53,333
= 46,666
Here, taxes are levied on VND 46,666.
Is there any Crypto Tax Free in Vietnam?
Swapping and transferring of crypto is tax free in Vietnam.
Crypto Tax in Vietnam – FAQs
Do you have to pay tax when you buy crypto in Vietnam?
No,you don’t have to pay tax when you buy crypto in Vietnam.
Do you have to pay tax when you sell crypto in the Vietnam?
Yes, you have to pay tax when you sell crypto in the Vietnam.
Do you have to pay tax when transferring crypto in Vietnam?
No, you don’t have to pay tax when transferring crypto in Vietnam
Do you have to pay tax when spending crypto in Vietnam?
Crypto as a payment method is not recognised in Vietnam. Therefore it is unclear if spending in crypto would be taxable or not.
Is swapping crypto taxable?
No, swapping crypto for another is not taxable in Vietnam.
How much tax on crypto gains in Vietnam?
| Type of taxable income | Tax rate (%) |
| Distribution and supply of goods | 0.5 |
| Services, construction without provision of raw materials | 2.0 |
| Lease of assets | 5.0 |
| Production, transport, services attached to goods, construction including provision of raw materials | 1.5 |
| Other business operations | 1.0 |
* Individuals earning business income from VND 100 million per calendar year and below shall not be subject to PIT on their business income.
Market Research Intern, Octaloop
Maitreyee takes a keen interest in financial technologies and their potential to transform lives at the grassroots. Put together with her penchant for Economic Research, she brings tonnes of academic and actionable insight into our products. Maitreyee is contributing at Binamite as a Market Research Intern, and when she's not doing that, you can find her exploring the city or buried in a book.