Vietnam's 0.1% Crypto Transaction Tax: What It Means for Traders

2 December 2025 4 Comments Michael Jones

Vietnam Crypto Tax Calculator

How the Tax Works

Vietnam taxes every crypto trade at 0.1% - regardless of profit or loss. The tax applies to both buying and selling transactions.

Note The first 10 million VND ($400) in annual crypto gains is tax-free for individuals.

Buy Amount (VND or USD)

Sell Amount (VND or USD)

Apply $400 exemption

Enter trade details to see tax calculation

Buy Tax (0.1%) 0 VND

Sell Tax (0.1%) 0 VND

Total Tax 0 VND

Effective Tax Rate 0%

On January 1, 2026, Vietnam will begin taxing every crypto trade at 0.1%-no exceptions. It doesn’t matter if you made a profit or lost money. If you bought, sold, or swapped Bitcoin, Ethereum, or any other token, the government takes 0.1% of the total value. That’s not a tax on gains. That’s a tax on the trade itself.

Why Vietnam Is Doing This

Vietnam isn’t trying to punish crypto traders. It’s trying to collect money from a market it can no longer ignore. About 17 million people in Vietnam own cryptocurrency. That’s nearly one in five adults. The total value of crypto held by Vietnamese citizens exceeds $100 billion. Chainalysis ranks Vietnam third in global usage of international crypto exchanges. The government sees this as a revenue opportunity-and it’s acting fast.

The new tax is part of a broader update to Vietnam’s Personal Income Tax Law. For the first time, digital asset transfers are officially classified as "other income." This means crypto trades are now treated like stock trades under tax law. The 0.1% rate matches the existing fee for securities trading, showing the government wants consistency across financial markets.

This isn’t just about taxes. It’s about control. Vietnam’s Digital Technology Industry Law, passed in June 2025, gives the state its first legal definition of "crypto assets." It also sets the stage for regulation, compliance, and enforcement. The Ministry of Finance isn’t just writing rules-it’s building a system to track every transaction.

How the Tax Works in Practice

Let’s say you buy $10,000 worth of Bitcoin. Then you sell it for $12,000. You made $2,000 profit. Under the new rules:

You pay 0.1% on the $10,000 purchase = $10
You pay 0.1% on the $12,000 sale = $12
Total tax: $22

Even if you lost money, you still pay. If you sold for $8,000 instead, you’d still pay $10 on the buy and $8 on the sell-$18 total. There’s no offset for losses. No deductions. Just a flat fee on every trade.

That’s different from most countries. The U.S., for example, only taxes capital gains. Germany lets you trade crypto tax-free after one year. Vietnam’s model is more like Singapore’s securities tax-but applied to retail crypto traders.

Who Pays and Who Doesn’t

The tax applies to individuals and businesses alike. But there’s a small break for small investors. The first 10 million Vietnamese dong ($400) in annual crypto gains are tax-free. That helps casual traders who buy a little Bitcoin on weekends and don’t trade often.

But if you’re active? You’re in the crosshairs. Every swap, every transfer, every trade on Binance, Bybit, or any other platform counts. Even peer-to-peer trades between friends are subject to reporting.

Businesses face even more. Crypto exchanges must pay 10% VAT on service fees. Mining and staking income is taxed at 5% to 35%, depending on your total earnings. Corporate income tax for crypto companies is 20%. And all of it is tracked through mandatory reporting.

Individuals must file an annual report to the General Department of Taxation by March 31. Businesses file quarterly. If you don’t report, penalties start at 2 million VND ($80) or 2% of unpaid tax-whichever is higher. Repeat offenders face higher fines and possible account freezes.

Traders fall off a crumbling Binance roller coaster as tax coins rain down in Hanna-Barbera animation style.

Why Exchanges Are Worried

Binance didn’t stay silent. On October 1, 2025, they sent a formal letter to Vietnam’s Ministry of Finance warning that the 0.1% tax could break market liquidity.

Here’s why: Market makers-traders who provide buy and sell orders to keep prices stable-make profits of about 0.01% per trade. That’s already thin. Add a 0.1% tax, and they’re losing money on every trade. They can’t absorb that cost. So they’ll pull back. Or raise spreads. Or leave Vietnam entirely.

That’s bad for regular users. Less liquidity means wider spreads. You’ll pay more to buy Bitcoin. You’ll get less when you sell. The tax meant to generate revenue could end up hurting the very people it targets.

This isn’t theoretical. When other countries introduced similar gross-value taxes-like India’s 1% TDS on crypto trades-market volume dropped sharply. High-frequency traders vanished. Order books thinned. Retail traders paid more.

Vietnam’s government knows this. That’s why they’re running a pilot program. The goal? Test the tax on a small scale, watch what happens, and adjust before rolling it out nationwide.

What’s Next for Vietnam’s Crypto Market

The government isn’t just taxing. It’s trying to build a crypto hub. Under discussion are incentives to attract businesses:

10% corporate income tax rate for crypto exchanges during their first five years
VAT exemptions on crypto transactions to boost liquidity
5-10% tax on NFT sales
1-5% withdrawal fees for foreign investors

These aren’t final. But they show a pattern: tax aggressively on retail, but offer sweeteners to exchanges and institutions. The goal? Keep the money flowing into Vietnam-not out of it.

The State Security Commission is already working with exchanges like Bybit to build AML and CFT systems. This isn’t just about money. It’s about control. Vietnam wants to know who owns what, where it moves, and who’s behind it.

Split scene: casual trader enjoys tax-free crypto gains while a business owner drowns in tax forms.

What Traders Should Do Now

If you’re a crypto user in Vietnam, here’s what you need to do:

Track every trade. Use a crypto tax tool like Koinly or CoinTracker. Record date, amount, asset, and value in VND at time of trade.
Save transaction IDs. Exchanges may not provide tax reports. You’ll need proof of each trade.
Don’t ignore the $400 exemption. If your total annual gains are under 10 million VND, you’re exempt. But you still need to report if you traded.
Watch for updates. The pilot program starts in January. Rules may change based on feedback.
Don’t assume anonymity. Vietnam’s tax authority is linked to banking systems and exchange compliance teams. Offshore wallets won’t help.

The Bigger Picture

Vietnam’s 0.1% tax isn’t about fairness. It’s about catching up. For years, the country turned a blind eye to crypto. Now, with $100 billion in assets moving through its borders, it can’t afford to anymore.

The tax is blunt. It doesn’t care if you won or lost. It just takes its cut. That’s why many traders will feel it as a burden. But the government sees it as a necessary step toward legitimacy.

The real question isn’t whether the tax will work. It’s whether Vietnam can balance revenue with growth. If the tax kills liquidity, no one wins. If it’s adjusted early, Vietnam could become the most regulated-and most transparent-crypto market in Southeast Asia.

Right now, it’s a gamble. And every trader is a player.

Is the 0.1% crypto tax in Vietnam based on profit or trade value?

It’s based on trade value-not profit. Every time you buy or sell crypto, you pay 0.1% of the total transaction amount. Even if you lose money on the trade, you still pay the tax. This is different from countries like the U.S., where you only pay tax when you make a profit.

Do I have to report crypto trades if I didn’t make a profit?

Yes. Vietnam requires all individuals to report annual crypto activity, regardless of profit or loss. The tax is applied per transaction, so even trades that result in losses must be recorded. You’ll need to file a report with the General Department of Taxation by March 31 each year.

Are there any exemptions from the crypto tax in Vietnam?

Yes. The first 10 million Vietnamese dong (about $400) in annual crypto gains are tax-free. This applies to individuals only. It doesn’t exempt you from paying the 0.1% transaction tax on each trade, but it means you won’t owe additional capital gains tax if your total yearly profit stays under that threshold.

Will this tax make crypto trading less profitable in Vietnam?

It already has. Many market makers and high-frequency traders are pulling back because the 0.1% tax eats into their tiny profit margins-often 10 times more than their earnings per trade. This reduces liquidity, widens spreads, and makes it harder for regular users to buy and sell at good prices. Retail traders are paying more without realizing it.

Can I avoid the tax by using offshore exchanges?

No. Vietnam’s tax authority works directly with major exchanges operating in the country, including Binance and Bybit. Even if you use an offshore platform, your bank account and identity are linked to your trades. The government can track deposits, withdrawals, and transaction patterns. Avoiding reporting risks penalties of up to 2% of unpaid tax or a minimum of 2 million VND.

When does the crypto tax officially start in Vietnam?

The 0.1% transaction tax officially takes effect on January 1, 2026, alongside the new Digital Technology Industry Law. However, the government is running a pilot program first to test compliance, reporting systems, and market impact before full enforcement.

How does Vietnam’s crypto tax compare to other countries?

Vietnam’s model is unusual. Most countries tax crypto gains (like the U.S. or Germany), not every trade. India also taxes at 1% per trade, but Vietnam’s 0.1% rate is lower. However, Vietnam adds capital gains tax on top-up to 35%-making it one of the most comprehensive systems in Asia. The key difference is Vietnam’s focus on gross transaction value, not net profit.