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The Ministry of Finance (MOF) is seeking feedback on a draft tax administration law to replace the 2019 Law on Tax Administration, which is expected to be submitted at the upcoming session of the Legislature.
According to the MOF, the drafter, the revised law is expected to meet the demands in a rapidly evolving context marked by the emergence of new economic models, technology- and digital platform-based business models, artificial intelligence, and e-commerce. It also aims to promote administrative reform and make vigorous changes in tax administration practices.
Comprehensive revision
Compared to the 2019 version, the draft Law on Tax Administration removes several provisions to ensure consistency and uniformity across the legal system. Specifically, it abolishes the presumptive tax policy for household businesses in line with the Politburo’s Resolution 68-NQ/TW on private economy development; and simplifies administrative procedures by eliminating conditions and requirements for issuance of certificates of eligibility for provision of tax-related procedure services. It also removes the provisions on the order of payment of taxes, late-payment interests and fines, as taxpayers can now proactively make payments with their identification numbers in accordance with Ministry of Finance Circular 86/2024/TT-BTC. In addition, the draft annuls articles on tax inspection for the reason that tax inspectorates are no longer organized within tax agencies.
With respect to tax administration for business households and business individuals, the draft proposes classification of these entities by revenue scale to apply appropriate tax calculation methods consistent with the laws on value-added tax and personal income tax. It introduces a flexible, risk-based administration model that integrates data from e-invoices, bank accounts, and e-commerce platforms, and supports the creation of suggestive tax declaration forms for small-scale and low-risk taxpayers.
At the same time, the draft promotes the use of digital technologies in tax declaration and payment and use of e-invoices with verification codes and mobile apps, thus reducing the frequency of declarations and payments and simplifying accounting procedures.
The draft completes a legal framework for managing new economic models and technology- and digital platform-based business models, thoroughly reforms tax administration by shifting from a “management” mindset to a “service” approach, placing taxpayers at the center of service provision. It seeks to promote voluntary compliance on the basis of classifying the extents of law compliance and risks of taxpayers; intensify the streamlining of administrative procedures; and strengthen measures to prevent tax revenue loss.
As evaluated by the MOF, the draft law does not set out any new administrative procedures but instead focuses on amending or abolishing administrative procedures that become no longer appropriate. This represents a substantial reform effort that helps reduce compliance costs and increase transparency for both taxpayers and tax agencies.
Expert opinions
Speaking at a recent meeting to solicit opinions on the draft, Dang Ngoc Minh, Deputy Director-General of the MOF’s Department of Taxation, stressed that drafting a new law on tax administration is an urgent requirement in the context of digital transformation. The goal, he said, is to comprehensively modernize tax administration, enhance operational efficiency of tax authorities, and maximize convenience for taxpayers.
According to the 2025 Legislative Program, amendments to major laws will be submitted to the National Assembly for debate and adoption, such as the Law on the State Budget, the Law on Corporate Income Tax, the Law on Excise Tax, and the Law on Customs. This necessitates the revision of the Law on Tax Administration to ensure consistency within the legal system, Minh added.
At a workshop hosted by the Department of Taxation with domestic and international experts, World Bank expert Risk Fisher recommended drafting the law with in-principle, general provisions to ensure flexibility, long-term applicability, and adaptability to reality. He proposed including specific provisions in guiding texts.
Other participants agreed that the law should be aligned with international practices to facilitate implementation for both domestic taxpayers and businesses, while exerting positive impacts on production and business operations of FDI enterprises in Vietnam.
By VLLF
