Vietnam Tax Authority Enters a New Era: Comprehensive Transformation of Tax Management Model

Amidst the prevailing trend of state apparatus consolidation and streamlining, the Vietnam Tax Authority has demonstrated a strong commitment to transforming its tax management model. Shifting from a traditional function-based management model to a subject-matter combined with function-based management model, the Tax Authority is poised to revolutionize state budget revenue (SBR) management.

To ensure a smooth, effective, and efficient transition, the General Department of Taxation convened a crucial conference over two days, February 27th and 28th, 2025, in Hung Yen city. The conference focused on preparations for implementing the new organizational structure model, under the close guidance of Deputy Director-General Mai Son, along with key leaders from the General Department of Taxation and local Tax Departments.

Landmark Conference: Building the Foundation for a Modern Tax Management Model

Speaking at the conference, Deputy Director-General Mai Son emphasized the landmark nature of this event. The conference was organized to develop and refine the transformation method from a function-based tax management model to a new model, a process that is both groundbreaking and comprehensive.

The Deputy Director-General affirmed that the tax management model transformation would bring about profound changes in the Tax Authority’s operational methods. Tax management procedures will be optimized and consolidated, while responsibilities will be clearly defined. In particular, the Tax Authority will accelerate the application of information technology in all aspects of tax management operations, along with improving applications to support taxpayers, creating the most favorable conditions for people and businesses to fulfill their tax obligations.

Tabletop Exercises and In-Depth Discussions: Ensuring Seamless Transition

The conference focused on exchanging, discussing, and conducting tabletop exercises simulating real-world situations that may arise during the transition. Delegates jointly analyzed and proposed response plans for nghiệp vụ, functions, and tax management procedures when the new organizational model officially becomes operational. The goal is to ensure tax management activities are continuous and smooth, without causing interruptions in resolving tax administrative procedures for taxpayers and SBR collection efforts.

Multifaceted Opinions and Practical Recommendations from Grassroots Levels

At the conference, representatives from professional units of the General Department of Taxation and local Tax Departments frankly and multi-dimensionally shared challenges and difficulties during the organizational model transformation process. Numerous opinions and recommendations were put forward, focusing on how to make the new model operate effectively and smoothly, while providing the best support for taxpayers and improving tax management efficiency.

One of the opinions widely agreed upon by delegates was the need to uniformly apply a big data platform on taxpayers nationwide. Building and effectively utilizing Big Data is considered paramount for the Tax Authority to be able to timely support taxpayers in production and business activities and fulfill tax obligations, realizing the “nurturing revenue sources” policy in a practical and targeted manner.

Technology Application and Synchronous Coordination: Keys to Success

Ms. Le Thi Duyen Hai, Director of the Tax Declaration Department, emphasized that for the new tax management model to achieve maximum efficiency, the allocation of management by subject matter and function needs to be carried out in a focused and clear manner. At the same time, Director Hai particularly emphasized the role of accelerating the comprehensive application of information technology, artificial intelligence (AI), and big data platforms on taxpayers.

Director Le Thi Duyen Hai also proposed the need to build a close-knit connection between departments within tax authorities at all levels, as well as between tax authorities and other state management agencies in the area. Synchronous and effective coordination through a one-stop-shop mechanism and specific assignment of responsibilities in each nghiệp vụ procedure will help avoid overlaps and improve the efficiency of tax management.

In-depth Group Discussions: Resolving Obstacles, Finding Optimal Solutions

To delve deeper into specific issues, the conference was divided into 5 discussion groups based on specialized topics:

• (i) Enterprise Management and Support: Focusing on solutions to improve the quality of business support services, creating a favorable business environment.
• (ii) Tax Inspection and Examination: Discussing effective inspection and examination methods in the new model, ensuring compliance with tax laws.
• (iii) Professional Operations, Budget Estimates, Legal Affairs: Reviewing and adjusting nghiệp vụ operations, budget estimates, and legal affairs to align with the new model.
• (iv) Business Households, Individuals, Land-related Revenues, and Other Revenues: Finding effective management solutions for these specific subjects and revenue sources.
• (v) Data Management: Discussing the construction, management, and effective exploitation of big data platforms on taxpayers.

The General Department of Taxation requested representatives from tax agencies to have serious discussions, point out difficulties and obstacles, and propose solutions, providing a basis for the General Department of Taxation to have timely guidance and direction.

Closing of Books, Handover, and Budget Estimate Deployment: Ensuring Continuous Operation

One of the core contents of the conference was the tabletop exercise and detailed discussion on closing of books and data handover. This is a crucial step to ensure continuity and uninterrupted operation of the Tax Authority after the new organizational model is officially announced and put into operation. Delegates focused on discussing re-determining budget estimates, deploying budget estimates, as well as necessary administrative procedures and inspection and examination records.

Improving Budget Revenue Collection Efficiency: The Highest Goal

The conference also devoted significant time to discussing solutions to improve the efficiency of tax revenue management. Delegates analyzed and evaluated factors affecting revenue collection results, identified the root causes of limitations, and proposed solutions to overcome them. The ultimate goal is to accelerate the progress of SBR collection, maximizing potential revenue sources.

Legal Affairs, Budget Estimates, and Management of Business Households: Synchronous Deployment

The General Department of Taxation thoroughly directed tax agencies to strictly implement legal affairs work, ensuring synchronicity and uniformity during the transition process. Contents related to legal affairs work, inspection and examination, budget estimates, and management of business households and individuals were thoroughly discussed, ensuring continuity of responsibility and smooth operation of the new apparatus.

IT Application: Maintaining Tax Authority Codes, Management Decentralization

To ensure stability and continuity in tax management, nghiệp vụ units will coordinate to deploy information technology solutions. The goal is to maintain the tax authority codes by current area and maintain the current taxpayer management decentralization until the end of 2025. At the same time, the system will be supplemented with new tax authority codes for Regional Tax Sub-Departments, Large Enterprise Tax Sub-Departments, E-commerce Tax Sub-Departments, and Inter-district Tax Teams under the new organizational model, serving the monitoring and evaluation of SBR collection performance of the new units.

Vietnam Tax Authority [Steadfast] on the Journey of Digital Transformation and Modernization

The conference on preparations for the transformation of tax management according to the new organizational model was successfully concluded, demonstrating the determination, proactiveness, and thorough preparation of the Vietnam Tax Authority. With unity, solidarity, and continuous efforts, the Tax Authority is steadfastly advancing on the path of digital transformation and modernization, towards the goal of building a tax system that is effective, efficient, transparent, and best serves the people and businesses.