Replacement Law On Tax Administration: Breakthrough Proposal For The Digital Age

The development of the Replacement Law on Tax Administration not only contributes to enhancing tax administration capacity but also helps improve the investment and business environment, increase the competitiveness of the economy, and create a suitable legal framework for Vietnam to deeply integrate into the global economy. Promote digital transformation and modernization of tax administration.

Proposal And Necessity Of Developing The Replacement Law On Tax Administration

The Ministry of Finance recently announced the draft Submission requesting the development of the project for the Replacement Law on Tax Administration. According to the Ministry of Finance, Law on Tax Administration No. 38/2019/QH14 has brought many positive impacts. However, in the face of rapid domestic and international economic development, limitations and inadequacies have emerged, requiring review and amendment to ensure consistency, transparency, and facilitate production and business activities. The 2019 Law on Tax Administration has created an important legal framework, but the volatility of the global economy, the development of the digital economy, e-commerce, and cross-border transactions have posed new challenges. In addition, newly issued legal documents have also created inconsistencies. Therefore, the development of the Replacement Law on Tax Administration is necessary to overcome inadequacies, supplement new regulations, and ensure consistency.

Overall Objectives Of The Replacement Law On Tax Administration

The Ministry of Finance stated that the new Law aims for several important objectives, including:

• Promoting digital transformation and modernization of tax administration: Applying modern information technology, linking and integrating data to improve management efficiency, reduce risks, and facilitate taxpayers.
• Comprehensively reforming tax administration activities: Aiming for modernity, efficiency, transparency, unified and public operation based on clear institutional policies, simplified administrative procedures, and conformity with international practices.
• Overcoming inadequacies of the current law: Ensuring unity and consistency with relevant legal documents.

Reforming Administrative Procedures And Enhancing Tax Administration Efficiency

An important aspect of the new law is the strong reform of tax administrative procedures through simplifying processes, innovating content and legal provisions to ensure clarity, transparency, and facilitate taxpayers. This is linked to electronic tax administration, helping businesses and individuals easily comply with tax obligations and improve state budget revenue efficiency. Simultaneously, the goal is to enhance tax administration capacity, strengthen the prevention of tax evasion, revenue loss, and tax debt by building a close coordination mechanism between state agencies and relevant organizations and individuals, strengthening control, and promptly handling fraudulent acts.

Applying New Procedures, Ensuring Revenue, And Adapting To The New Economy

The draft Law emphasizes the institutionalization of the Party and State’s policies on modernizing tax administration, redesigning tax administration processes towards the application of information technology, in line with a streamlined, effective, and efficient tax agency organizational model at all levels. The new Law also focuses on promoting decentralization and devolution, simplifying administrative procedures related to tax registration, declaration, payment, refund, exemption, and reduction, applying new simple and convenient procedures, enhancing transparency, and facilitating both taxpayers and tax authorities in fulfilling their obligations and functions. Another important objective is to ensure state budget revenue, contributing to the economic development goals for the 2026-2030 period by promoting voluntary compliance based on the classification of the level of legal compliance and risk assessment, while improving tax management regulations in line with the development of new economic sectors such as the digital economy, sharing economy, cross-border transactions, and smart manufacturing.

Legalizing Contents Proven By Practice

The draft also emphasizes the legalization of important contents that have been proven in practice to ensure transparency and enhance the legal basis, making the tax legal system clearer and avoiding inadequacies in the application process.