What is Pi Network? Is income from buying vtv5 trực tiếp bóng đá hôm nay selling Pi Network virtual currency subject to PIT in Vietnam?
What is Pi Network?
Pi Network is a cryptocurrency project developed by a group of former Stanford University students. The project was launched on March 14, 2019, with the goal of creating a cryptocurrency that can be mined directly on mobile phones without consuming as much resources as Bitcoin or Ethereum.
Pi Network can be considered a virtual currency (digital asset) but is not yet a complete cryptocurrency because it cannot be officially traded vtv5 trực tiếp bóng đá hôm nay lacks a transparent blockchain like Bitcoin or Ethereum.
*How Pi Network works:
- Users download the Pi Network application on their phones vtv5 trực tiếp bóng đá hôm nay press the "mine" button daily to receive Pi.
- The mining process does not consume many device resources but mainly relies on the level of interaction vtv5 trực tiếp bóng đá hôm nay user network.
What is Pi Network? Is income from buying vtv5 trực tiếp bóng đá hôm nay selling Pi Network virtual currency subject to PIT in Vietnam? (Image from the Internet)
Is Pi Network virtual currency a legal means of payment in Vietnam?
Currently, there are no legal regulations governing types of electronic money or virtual assets.
However, based on Clause 2, Article 17 of theLaw on the State Bank of Vietnam 2010, which provides for the issuance of paper money vtv5 trực tiếp bóng đá hôm nay coins as follows:
Issuance of paper money vtv5 trực tiếp bóng đá hôm nay coins
- The State Bank is the sole agency responsible for issuing paper money vtv5 trực tiếp bóng đá hôm nay coins of the Socialist Republic of Vietnam.
- Paper money vtv5 trực tiếp bóng đá hôm nay coins issued by the State Bank are legal means of payment in the territory of the Socialist Republic of Vietnam.
- The State Bank ensures the supply of sufficient quantity vtv5 trực tiếp bóng đá hôm nay structure of paper money vtv5 trực tiếp bóng đá hôm nay coin for the economy.
- Paper money vtv5 trực tiếp bóng đá hôm nay coins issued into circulation are considered "Debt" assets to the economy vtv5 trực tiếp bóng đá hôm nay are balanced by "Assets" of the State Bank.
At the same time,Công trực tiếp bóng đá euro hôm nay 5747/NHNN-PCof the State Bank of Vietnam also provides guidance as follows:
Based on the above regulations,virtual currencies in general, vtv5 trực tiếp bóng đá hôm nay Bitcoin, Litecoin in particular, are not considered currencies vtv5 trực tiếp bóng đá hôm nay are not legal means of payment under Vietnamese law. The issuance, provision, vtv5 trực tiếp bóng đá hôm nay use of virtual currencies in general, vtv5 trực tiếp bóng đá hôm nay Bitcoin, Litecoin in particular (as illegal payment means), as currencies or means of payment are prohibited. Sanctions for handling these acts are stipulated in Decree 96/2014/ND-CP of the Government of Vietnam on penalties for administrative violations in monetary vtv5 trực tiếp bóng đá hôm nay banking sectors vtv5 trực tiếp bóng đá hôm nay the Criminal Code 2015 (amended vtv5 trực tiếp bóng đá hôm nay supplemented). Additionally, regarding investment in virtual currencies, the State Bank of Vietnam has repeatedly warned that such investments pose significant risks to investors.
Through the above regulations, it can be seen that Pi Network virtual currency is not considered currency vtv5 trực tiếp bóng đá hôm nay is not a legal means of payment under Vietnamese law, vtv5 trực tiếp bóng đá hôm nay the issuance, provision, vtv5 trực tiếp bóng đá hôm nay use of virtual currencies in general as currencies or means of payment are prohibited.
Simultaneously, based on Clause 6, Article 26 ofDecree 88/2019/ND-CPamended by Point d, Clause 15, Article 1 ofDecree 143/2021/ND-CP, which provides for violations of payment activities as follows:
Violations of payment activities
...
- A fine ranging from VND 50,000,000 to VND 100,000,000 shall be imposed for any of the following violations:
...
d) Issuing, providing, or using illegal payment means that have not reached the level of being prosecuted for criminal liability;
...
Therefore, Pi Network virtual currency is not considered currency vtv5 trực tiếp bóng đá hôm nay is not a legal means of payment under Vietnamese law. Individuals who issue, provide, or use illegal payment means, specifically Pi Network virtual currency, but have not reached the level of being prosecuted for criminal liability, may be fined from VND 50,000,000 to VND 100,000,000.
Note: The above-mentioned fines apply to individuals; fines for organizations are twice the fines for individuals (Point b, Clause 3, Article 3 ofDecree 88/2019/ND-CP)
Is income from buying vtv5 trực tiếp bóng đá hôm nay selling Pi Network virtual currency subject to PIT in Vietnam?
Based onBản án về khiếu kiện quyết định truy thu thuếregarding an appeal against the tax collection decision by the People's Court of Ben Tre Province as follows:
The People's Court of Ben Tre Province noted:Decision No. 714/QD-CCT dated May 12, 2016, of the Head of Department T, based on Official Dispatch No. 4356/BTC-TCT dated April 1, 2016, of the Ministry of Finance, which states: “... the buying vtv5 trực tiếp bóng đá hôm nay selling of digital currencies is a commercial trading activity; digital currencies are subject to value-added tax vtv5 trực tiếp bóng đá hôm nay individuals trading in digital currencies are subject to personal income tax...” exceeds the authority to issue according to the Law on the Promulgation of Legal Documents, meaning Official Dispatch No. 4356/BTC-TCT dated April 1, 2016, of the Ministry of Finance exceeds the provisions of the Code, Law, Decree, vtv5 trực tiếp bóng đá hôm nay Decisions of the Prime Minister of the Government of Vietnam,implicitly acknowledging digital currencies (virtual currencies) as goods to be bought vtv5 trực tiếp bóng đá hôm nay sold as a commercial trading activity vtv5 trực tiếp bóng đá hôm nay must be taxed is incorrect, infringing upon the legitimate rights vtv5 trực tiếp bóng đá hôm nay interests of Mr. C, also affecting the monetary policy management of the State Bank, creating conditions for illegal money transfer, payment, vtv5 trực tiếp bóng đá hôm nay funding for illicit transactions.
Decision of the People's Court of Ben Tre Province:Accepting Mr. Nguyen Viet C's lawsuit, ruling:to annul Decision No. 714/QD-CCT dated May 12, 2016, of the Head of Department T, which includes the decision to collect VAT vtv5 trực tiếp bóng đá hôm nay PITin relation to the online buying vtv5 trực tiếp bóng đá hôm nay selling of virtual currencies by Mr. C.
In addition, based on Clause 1, Article 3 of thePersonal Income Tax Law 2007amended by Clause 1, Article 2 of theLaw amending various Tax Laws 2014is provided as follows:
Taxable income
Taxable personal income includes the following types of income, except for income exempt from tax as specified in Article 4 of this Law:
- Income from business activities, including:
a) Income from production, business activities of goods, services;
b) Income from independent professional activities of individuals holding a practice license or certificate as prescribed by law.
Income from business as stipulated in this clause does not include income of businesses with revenue not exceeding VND 100 million/year.
...
Simultaneously, based onCông trực tiếp bóng đá euro hôm nay 5747/NHNN-PCfrom the State Bank of Vietnam, guidance is as follows:
Based on the above regulations,virtual currencies in general, vtv5 trực tiếp bóng đá hôm nay Bitcoin, Litecoin in particular, are not considered currencies vtv5 trực tiếp bóng đá hôm nay are not legal means of payment under Vietnamese law. The issuance, provision, vtv5 trực tiếp bóng đá hôm nay use of virtual currencies in general, vtv5 trực tiếp bóng đá hôm nay Bitcoin, Litecoin in particular (as illegal payment means), as currency or means of payment is prohibited. Sanctions for handling these acts are stipulated in Decree 96/2014/ND-CP of the Government of Vietnam on penalties for administrative violations in monetary vtv5 trực tiếp bóng đá hôm nay banking sectors vtv5 trực tiếp bóng đá hôm nay the Criminal Code 2015 (amended vtv5 trực tiếp bóng đá hôm nay supplemented). Additionally, regarding investment in virtual currencies, the State Bank of Vietnam has repeatedly warned that such investments pose significant risks to investors.
Through the above basis, it can be concluded that Pi Network virtual currency is not considered currency vtv5 trực tiếp bóng đá hôm nay is not a legal means of payment under Vietnamese law, therefore, the buying vtv5 trực tiếp bóng đá hôm nay selling of Pi Network virtual currency is illegal. As a result, income from buying vtv5 trực tiếp bóng đá hôm nay selling Pi Network virtual currency is not subject to PIT.
