Law & Taxes Vietnam - April 2025

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April 2025: Crypto Tax Uncertainty, Exit Bans, Cross-Border Employment, and VAT Overhaul

Vietnam’s Crypto Paradox: No Legal Recognition, Unclear Tax Treatment

Vietnam has one of the highest cryptocurrency ownership rates in the world as of 2025. Despite this, cryptocurrencies remain unregulated and legally ambiguous in Vietnam.

The People's Court of Ben Tre ruled against tax authorities attempting to impose taxes on crypto trading. Their judgment dictated that cryptocurrencies do not meet the legal definition of taxable goods or assets. Consequently, the Vietnamese tax authorities’ efforts to tax crypto-related transactions have so far been unsuccessful. Similarly, Verdict No. 224/2024/HSST reaffirmed that cryptocurrencies are not recognized as goods, assets, or legal payment instruments under Vietnamese law.

Due to this lack of legal recognition, the tax implications of cryptocurrency transactions remain unclear. Vietnam currently has no specific regulations addressing crypto transactions or income from digital assets. The government generally taxes investment income, but crypto’s cross-border and anonymous nature makes enforcement challenging.

The Prime Minister’s Decision 194/QD-TTg directs the Ministry of Finance to develop a legal framework for virtual assets by May 2025. Until then, crypto taxation remains uncertain, with the only certainty being that crypto is still a legal gray area and investors should exercise caution while engaging in digital asset transactions.

Contributed by Luther Vietnam Law LL.C

Exit Free: Tax Enforcement Through Exit Bans

In an effort to enforce personal income tax (“PIT”) compliance, the government introduced stricter measures to tackle overdue tax debts. Under Decree 49/2025/ND-CP, dated 28 February 2025, individuals and business representatives with significant unpaid taxes may now face exit bans that temporarily prevent them from leaving the country.

The decree clarifies and expands previous exit restrictions, setting specific thresholds for overdue tax debts as follows:

Sole traders, self-employed individuals, and business households owe at least VND 50 million ($2,000) for more than 120 days.
Legal representatives of companies, cooperatives, and cooperative unions with overdue taxes of at least VND 500 million ($20,000) for over 120 days.
Individuals and entities no longer operating at their registered addresses who fail to settle taxes within 30 days of a tax enforcement notice.
Vietnamese nationals emigrating abroad and foreign nationals leaving Vietnam with outstanding tax debts.

Tax authorities will share debtor information with Immigration & Customs. Targeted tax debtors may be refrained from departing at exit gates until their tax debts are settled. To avoid hassles at the borders, taxpayers should periodically check outstanding liabilities, maintain accurate records, and seek professional tax guidance.

Contributed by Luther Vietnam Law LL.C

Cross-Border Employment: Key Regulatory Updates and Challenges in Vietnam

Vietnam’s labor market is undergoing significant transformations due to new regulations and workforce challenges.

Decree 70/2023/ND-CP, which amended Decree 152/2020/ND-CP, introduced favorable conditions for foreign businesses and workers by streamlining administrative procedures. Key updates included:

A revised hiring process for foreign workers, including a shorter demand reporting period, changes in approval authority, online job postings, electronic work permits, and an expanded list of exemptions.
The decree also permits relevant work experience to replace strict academic qualifications, making it easier for foreign professionals to work in Vietnam.

Despite the improvements, challenges remain, notably the requirement for a recruitment announcement for Vietnamese workers in specialized roles such as legal representatives and investors.

In 2024, 2,947 Vietnamese job seekers applied for 22,513 positions from 7,674 companies, yet none were hired. In response, the authorities launched public consultations in January 2025 to consider further regulatory adjustments.

Besides, a kind reminder to employees with multiple sources of income in 2024 who must file their Personal Income Tax (PIT) declaration by May 5, 2025.

As Vietnam’s labor regulations evolve, businesses and employees must stay informed to navigate cross-border employment and taxation effectively.

Contributed by RBA WTS Vietnam

2024 Value Added Tax (“VAT”) Regulations Overhaul: Essential Insights for Business Leaders

As Vietnam refines its tax framework, business leaders should stay informed about recent amendments affecting both domestic and foreign operations. The New Law on Value Added Tax (“VAT”), effective from 01 July 2025, introduces significant changes across various areas. Here are the essential insights:

1. Supplement of the taxpayers

Foreign suppliers without a permanent establishment in Vietnam that conduct e-commerce business or digital platform-based business with organizations and individuals in Vietnam;
Organizations that are operators of foreign digital platforms that withhold and pay tax obligations on behalf of foreign suppliers;
Business organizations in Vietnam that apply the VAT deduction method purchase services from foreign suppliers without a permanent establishment in Vietnam through e-commerce channels or digital platforms that withhold and pay tax obligations on behalf of foreign suppliers.

2. Tax Rates: Changing some goods/services from exempt to 5% VAT rate, and increasing some from 5% to 10% VAT rate.
3. Input VAT Creditability: The VND 20 million cash payment threshold is removed, requiring documentary for cashless payments on goods and services.
4. VAT Refund:

Available for investment expansion projects and provides a time limitation for applications for VAT investment projects;
Available business establishments that only produce goods and provide services are subject to a VAT rate of 5%;
Regulations on ownership transfer, mergers, and restructurings are abolished.

This article is intended to provide general information. Readers are encouraged to seek tailored advice from professional advisors.

Contributed by Rödl & Partner Vietnam

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