Tax policy on digital assets and corporate responsibility

Top 3 digital asset owners but framework is still "fragile"

Sharing at the Seminar, referring to the digital asset picture, Permanent Vice President of the Vietnam Blockchain Association Phan Duc Trung said: According to a report by the organization Chainalysis specializing in market analysis, in 2022, the flow of digital assets or crypto assets into the Vietnamese market will be about 100 billion USD. This number will grow to 120 billion USD by 2023. In 2021-2022, Vietnam will always be in the top 3 globally in terms of people owning digital assets (meaning 21% of the Vietnamese population owns) after the UAE and the United States.

Guests attending the Seminar (from right to left): Deputy Secretary General, Head of VCCI Legal Department Dau Anh Tuan; Deputy Director of the Department of Tax, Fee and Charge Policy Management and Supervision Truong Ba Tuan (Ministry of Finance); Permanent Vice President of Vietnam Blockchain Association Phan Duc Trung; CEO of AlphaTrue Company Tran Huyen Dinh

Many countries in the region have issued laws and policies to promote the creation of a legal corridor for these asset streams to contribute to the economy with positive values. In Vietnam, according to Mr. Dau Anh Tuan, Deputy Secretary General, Head of the Legal Department of VCCI, although digital assets or virtual currencies have developed in practice, in terms of law, we seem to have not kept up, we do not have a legal framework for this type of asset. Therefore, one of the new and outstanding points in the draft Law on Digital Technology Industry is the introduction of the concept of digital assets for the first time.

“Because we do not have an official legal framework, in recent times, there have been business investment activities that have been forced to leave Vietnam, for example, Sky Mavis Group, a Vietnamese technology unicorn with a game ecosystem, is a purely Vietnamese enterprise, but because there is no legal framework for in-game assets and it operates on the basis of digital content, a very large digital asset, so in the end they chose Singapore as their headquarters,” said Mr. Dau Anh Tuan.

Mr. Dau Anh Tuan said: With the strong development of science and technology as it is now, Vietnam needs to be a destination for digital technology investors. It is necessary to gradually build a legal framework, then the digital technology industry will gradually be formed, develop strongly, and the rights and interests of those participating in this field will be protected.

“We believe that the need for a legal framework for digital assets and transactions related to digital assets is something Vietnam needs to consider and quickly promote,” said a VCCI representative.

Need to build synchronous laws and policies

Sharing the same view, Mr. Truong Ba Tuan, Deputy Director of the Department of Tax, Fee and Charge Policy Management and Supervision (Ministry of Finance) analyzed: In the past, we did not have a legal framework related to digital assets, but digital asset transactions still took place through foreign exchanges and individuals. Therefore, it is necessary to have a legal framework related to digital assets. In particular, it is necessary to identify and clarify the definition of what digital assets are as well as the legal status of digital assets. If digital assets are recognized and managed as assets, it requires the participation of not only the Ministry of Finance but also many related ministries and branches.

The representative of the Ministry of Finance also affirmed that if the draft Law on Digital Technology Industry is passed by the National Assembly, within its scope and functions, the Ministry of Finance will implement related issues, including perfecting tax policies.

Mr. Tuan also proposed that there should be a unified concept of 'digital assets' for proper classification, because each digital asset can serve different purposes, from which there is a basis for tax collection. In addition, it is also necessary to perfect related laws to cover activities related to digital assets.

From a business perspective, Mr. Tran Huyen Dinh, CEO of AlphaTrue Company, commented: In recent times, businesses have received a lot of attention from the Government, through policies to promote digital transformation as well as develop the digital economy, for example, Decision 194/QD-TTg of the Prime Minister to help Vietnam get out of the grey list, the draft Decree on the controlled testing mechanism - Sandbox for the Fintech industry in Vietnam and especially the draft Law on Digital Technology Industry.

However, there are still many significant difficulties in the field of digital assets. According to Mr. Dinh, currently, the legal corridor on digital assets has not been completed, leading to a lack of clarity in establishing ownership rights and tax responsibilities of enterprises. In many cases, enterprises are forced to move to neighboring areas such as Singapore and Hong Kong to develop more easily. This not only creates challenges for enterprises in complying with the law but also makes it difficult to attract capital, especially foreign investment capital.

Regarding the draft Law on Digital Technology Industry and upcoming laws related to digital assets, AlphaTrue representatives expect that these regulations will bring transparency, specificity, create favorable conditions for businesses in this field, while limiting brain drain, as well as attracting more foreign capital into Vietnam. Enterprises hope to further accelerate the process for businesses to test and apply new technologies, with certain controls.

“We believe that when regulations on digital assets are legalized in a more specific and transparent manner, businesses will have more motivation and confidence to continue investing and developing, contributing to the development of the digital industry in Vietnam,” said Mr. Tran Huyen Dinh.

Mr. Dau Anh Tuan also expressed his hope that, in addition to the Law on Digital Technology Industry, there should be a larger, more systematic strategy, with clearer regulations on the development of synchronous and consistent policies for better effects. Therefore, there must be coordinated policies such as anti-money laundering policies, banking policies, security policies, and privacy policies. These policies must be consistent with tax collection policies.

According to Mr. Dau Anh Tuan, the systematic strategy also includes the assignment of responsibilities and obligations that ministries, departments, and branches need to do, not just the Ministry of Finance./.

Source: https://kinhtedothi.vn/chinh-sach-thue-voi-tai-san-so-va-trach-nhiem-cua-doanh-nghiep.html