Cryptocurrency Transfer Tax Effective from July 1

The tax on cryptocurrency and digital asset transfers is being collected under new rules starting July 1. These rules pertain to the transfer of such assets through service providers: income from the transaction is classified as other income for individuals and is subject to income tax at a rate of 0.1% of the amount of each transaction.

Key parameters of the new tax:

• Type of transaction: transfer, sale, or other transfer of cryptocurrency or digital assets through a service provider.
• Tax rate: 0.1% of the amount of each transaction.
• Who withholds the tax: the service provider in the field of crypto assets or digital assets after confirming the transaction.
• Note: the calculation is based on the transaction amount, not the investor's profit; for example, for a transaction of 10 million dongs, the tax will be 10 thousand dongs.

How the new tax is calculated

From today, transactions with digital assets are effectively equated in tax logic to transactions of private investors with securities. The tax base is determined directly by the value of the transfer: if an investor sells a crypto asset or digital currency, the calculation is based on the amount of the confirmed transaction, not the financial result.

This approach is important for those who view cryptocurrency as an investment or hold digital assets in accounting: each transfer becomes a separate taxable event. Various forms of crypto assets are subject to these rules, including tokens and digital coins; Bitcoin is perceived in this logic as one of the possible objects of the transaction if the operation goes through regulated infrastructure.

Who withholds the tax

Service providers in the field of crypto assets and digital assets are required to withhold and remit income tax immediately after the successful confirmation of the transaction. In other words, an online digital currency exchange service or trading platform takes on the calculation, withholding, and subsequent submission of monthly reports.

It is important to distinguish such operations from direct transfers between users: the described automatic mechanism is tied specifically to the service provider. When a transaction does not go through an exchange or online service, there is no one to withhold the tax at the moment of transaction confirmation, so the issue of self-declaration must be checked according to the applicable jurisdiction's rules.

For a private investor, this means automatic deduction of the tax amount when selling digital currency or another digital asset. Even if technically the transfer relies on blockchain, the tax mechanism is triggered at the moment of successful transaction confirmation by the service provider.

Rules for Foreign Organizations

If the transfer of crypto assets or digital assets through a service provider is made by a legal entity established under foreign law, a different regime applies.

For foreign organizations, the rules are as follows:

• Type of taxpayer: legal entity established under foreign law.
• Tax rate: 0.1%.
• Taxable object: revenue from each transfer of crypto assets or digital assets.
• Feature: the regime applies when the operation goes through a service provider.

For readers from Russia, this is a useful guideline: the described procedure is not a norm of the Tax Code of the Russian Federation and does not replace the approaches used by the Federal Tax Service of Russia for Russian residents, self-employment, simplified taxation system, or individual entrepreneur status in Russia. Here, the key factor remains the very fact of the operation through a service provider, not mining, coin issuance, or the work of the central bank.

Digital Assets Included in Officials' Declarations

Starting July 1, a new procedure for controlling the property and income of officials, as well as heads of organizations and departments, has also come into effect. For the first time, digital assets have been added to the list of assets that must be declared.

Digital assets and other types of property worth over 150 million dongs in each category are subject to declaration. The list includes:

• Cash.
• Gold.
• Stocks.
• Bonds.
• Equity shares.
• Foreign assets.
• Debt obligations.
• Digital assets.

The tax declaration can be submitted for the first time, annually, additionally, or for personal purposes in the approved form. The focus of these norms is on taxation and transparency of income, not criminal liability or imprisonment: the emphasis is on declaration, tax withholding, and asset value control.