VIETNAM CRYPTO ASSET MARKET: NEW TAX COMPLIANCE FRAMEWORK

1. OVERVIEW AND POLICY CONTEXT

The Ministry of Finance of Vietnam has issued Circular No. 41/2026/TT-BTC (“Circular 41”), providing comprehensive guidance on the declaration, withholding, payment, and finalization of taxes applicable to transactions on the crypto asset market. The Circular enters into force on 6 April 2026 and operates on a pilot basis in accordance with the timeframe established under Resolution No. 05/2025/NQ-CP on the Pilot Implementation of the Crypto Asset Market in Vietnam.

Circular 41 is to be read alongside Circular No. 32/2026/TT-BTC (“Circular 32”), which sets out the substantive tax policy – including applicable rates – for value-added tax (“VAT”), corporate income tax (“CIT”), and personal income tax (“PIT”) in respect of crypto asset transactions. Together, these two circulars constitute the primary regulatory framework for tax compliance on Vietnam’s emerging digital asset market.

This update is intended to assist foreign investors and businesses operating in, or considering entry into, Vietnam’s crypto asset ecosystem to understand their obligations and the compliance infrastructure now in place.

 2. APPLICABLE TAX POLICY (CIRCULAR 32/2026/TT-BTC)

Before examining procedural obligations under Circular 41, it is important to understand the substantive tax rates and categories established by Circular 32, which provides the basis for all withholding calculations.

2.1 Value-Added Tax (VAT)

In a notable market-supportive measure, the transfer and trading of crypto assets are expressly excluded from the scope of VAT. This exemption is designed to reduce transaction costs, enhance market liquidity, and attract participation during the pilot phase. Service providers, however, remain subject to VAT on their service fee income in the ordinary course.

2.2 Corporate Income Tax (CIT)

The following CIT regime applies to different categories of corporate taxpayers:

• Vietnamese-incorporated investors earning income from crypto asset transfers are subject to CIT at the standard rate of 20%, unless preferential rates apply pursuant to Articles 10(2) and 10(3) of the Law on Corporate Income Tax No. 67/2025/QH15. Taxable income is computed as the sale price less the acquisition cost of the transferred crypto assets and documented transaction costs.
• Licensed Crypto Asset Service Providers (as defined in Article 3(3) of Resolution 05/2025/NQ-CP) earning service income are similarly subject to CIT at 20%.
• Foreign-incorporated investors transferring crypto assets through a Vietnamese Service Provider are subject to CIT at a flat rate of 0.1% of gross transfer proceeds per transaction (withholding basis).

2.3 Personal Income Tax (PIT)

Individual investors – regardless of Vietnamese tax residency status – are subject to PIT at a rate of 0.1% of the gross transfer price per transaction upon transferring crypto assets through a Service Provider. The tax point is aligned with the rules applicable to securities transfers and applicable crypto asset legislation.

3. TAX DECLARATION, PAYMENT, AND ANNUAL SETTLEMENT
Circular 41 establishes detailed procedural requirements for organisations established and operating under Vietnamese law that are engaged in crypto asset transactions, transfers, or service provision within Vietnam.

3.1 Value-Added Tax Compliance

VAT filing obligations follow the standard framework under Section 2, Annex I of Decree No. 126/2020/ND-CP (as amended by Decree No. 373/2025/ND-CP), with prescribed forms set out in Section II, Annex II of Circular No. 80/2021/TT-BTC (as amended by Circular No. 40/2025/TT-BTC).

3.2 Corporate Income Tax Compliance

Service providers and other Vietnamese-law entities engaged in crypto asset activities must comply with the following CIT obligations:

• Quarterly provisional CIT payments must be determined and remitted in accordance with Article 8(6) of Decree No. 126/2020/ND-CP (as amended by Decree No. 91/2022/ND-CP).
• Annual CIT finalization must be completed no later than the last day of the third month following the close of the calendar or financial year.
• All tax filings must be submitted electronically to the directly supervising tax authority. Deadlines for filing and payment are governed by Chapters IV and VI of the Law on Tax Administration No. 38/2019/QH14 and implementing regulations.

Applicable CIT filing forms are prescribed in Section VI, Annex II of Circular No. 80/2021/TT-BTC (as amended by Circulars 40/2025, 94/2025, and 21/2026/TT-BTC).

4. WITHHOLDING MECHANISM – FOREIGN ENTITIES AND INDIVIDUALS
A key feature of Circular 41 is the introduction of a mandatory withholding mechanism designed to ensure tax compliance by foreign investors and individual taxpayers who transact through Service Providers.

4.1 Withholding Obligation

A Service Provider is required to withhold and remit on behalf of:

• Foreign-incorporated organisations – withholding of CIT at 0.1% of gross transfer proceeds; and
• Individual investors (resident and non-resident) – withholding of PIT at 0.1% of gross transfer proceeds.

The withholding obligation is triggered at the time the relevant transaction is confirmed as successfully completed on the Service Provider’s platform. The applicable tax rates are those prescribed in Circular 32.

4.2 Filing and Payment Deadlines

Service Providers must file withholding tax returns electronically. The filing deadline is no later than the 20th day of the month following the month in which the tax obligation arises. The payment deadline coincides with the filing deadline. The competent tax authority is determined by the relevant Head of the Provincial Tax Department.

5. OBLIGATIONS OF SERVICE PROVIDERS

Circular 41 imposes five categories of obligations on licensed Crypto Asset Service Providers operating in Vietnam. These obligations are designed to ensure end-to-end traceability, data integrity, and regulatory cooperation:

• Accuracy and Completeness of Withholding: Service Providers must withhold, declare, and remit taxes accurately and in full based on information provided by foreign entities and individual taxpayers. They bear full legal responsibility for the accuracy, truthfulness, and completeness of all tax documentation submitted.
• Investor Account and Transaction Data Management: Service Providers must manage investor accounts and maintain complete and accurate records of all crypto asset transactions on a per-transaction basis, together with all information and documentation necessary to determine and verify amounts withheld.
• Issuance of Tax Withholding Certificates: Service Providers must issue annual electronic tax withholding certificates to taxpayers in the prescribed form (Form No. 01/CTKT-TSMH, as annexed to Circular 41) in respect of crypto asset transfer activities.
• IT Systems and Data Management Infrastructure: Service Providers must develop and operate information technology systems capable of extracting, consolidating (on an annual basis), and converting transaction data into formats compatible with the tax authority’s management systems.
• Cooperation with Tax Authorities: Service Providers must provide all relevant records, documents, and data pertaining to crypto asset transfer activities conducted through their platforms upon request by competent tax authorities, in accordance with applicable tax administration legislation.

KEY TAKEAWAYS FOR FOREIGN INVESTORS AND BUSINESSES

Topic	Key Point
Tax on transfers by foreign entities	CIT at 0.1% of gross proceeds per transaction, withheld at source
Tax on transfers by individual investors	PIT at 0.1% of gross proceeds per transaction, withheld at source (applies regardless of residency)
VAT on crypto transfers	Exempt (not subject to VAT) – market-supportive policy
Tax collection mechanism	Automatic withholding by licensed Service Provider at transaction confirmation
Filing deadline (monthly withholding)	20th of the following month (electronic submission)
Annual CIT finalization	Last day of the 3rd month after financial year-end

7. EFFECTIVE DATE AND TRANSITIONAL NOTE

Circular 41 entered into force on 6 April 2026. It operates on a pilot basis for the duration of the pilot period specified in Resolution No. 05/2025/NQ-CP. Tax administration matters not expressly addressed in Circular 41 continue to be governed by applicable general tax administration legislation.

Foreign investors and service providers should ensure that their Vietnamese counterparts and local partners are in full compliance with the obligations established under this framework. Given the withholding mechanism, foreign entities should verify that their Service Provider of choice has properly registered with the relevant tax authority and has the operational capacity to fulfil its compliance and data management obligations.

By Minh Quan, Associate, Midland & Partners