02 circulars guiding Decree 178 on benefit payment for Vietnamese officials upon downsizing promulgated?

02 circulars guiding Decree 178 on benefit payment for Vietnamese officials upon downsizing promulgated?

The Government has issued Decree 178/2024/ND-CP which stipulates policies and regimes for officials, public employees, workers, and armed forces while implementing the downsizing of the political system's organizational apparatus.

To be specific, Decree 178/2024/ND-CP guides the arrangement and deployment of personnel, policies during workforce reduction, support for job termination, job position transformation, and related issues. Currently, there are 02 Circulars guiding Decree 178 on policies for officials and public employees during downsizing. Specifically, they include:

- Circular 01/2025/TT-BNV issued by the Ministry of Home Affairs on January 16, 2025, guiding the implementation of policies for officials and public employees and workers during the organization of the apparatus.

- Circular No. 07/2025/TT-BTC issued by the Ministry of Finance on January 24, 2025, guiding the determination of financial resources, budget estimates, management, usage, and settlement of funds for implementing the policies stipulated in Decree 178.

Thus, Decree 178 sets out general regulations for workforce reduction, while Circular 01/2025/TT-BNV and Circular No. 07/2025/TT-BTC specifically guide the policies and financial resources for implementing the downsizing.

02 circulars guiding Decree 178 on benefit payment for Vietnamese officials upon downsizing promulgated? (Image from the Internet)

Ministry of Finance of Vietnam: What are the guidlines for the financial sources for downsizing the organizational apparatus according to Decree 178?

The Ministry of Finance has issued Circular 07/2025/TT-BTC guiding the determination of financial resources, budget estimates, management, usage, and settlement of funds to implement policies for officials and public employees during the restructuring of the apparatus according to Decree 178/2024/ND-CP.

To be specific, according to Circular 07 of 2025, the Ministry of Finance guides the financial resources for downsizing the organizational apparatus as follows:

(1) Utilizing the recurrent expenditure budget (Clause 1 Article 2 Circular 07/2025/TT-BTC):

- Disbursement for preserving the salary of the previous position or the old leadership allowance until the end of the term or the appointment period for officials relinquished from positions or appointed to a lower position due to reorganizing the apparatus.

- Continue to pay the current salary (including allowances) for officials assigned to reinforce operations at the grassroots level.

- Implement policies for salary rank advancement and bonus payments for the relevant subjects.

- Disburse bonuses according to regulations.

(2) State budget (Clause 2 Article 2 Circular 07/2025/TT-BTC):

- For officials and public employees, workers, and armed forces under the management of ministries, ministerial-level agencies, agencies attached to the Government of Vietnam, and other central agencies, funding will be guaranteed by the central budget.

- For officials and public employees and workers under locally managed units, funding will be aggregated into the local salary reform needs.

(3) Budget estimate preparation, allocation, usage, and financial settlement (Article 5 Circular 07/2025/TT-BTC):

- The preparation, management, usage, and settlement of the state budget for implementing policies for officials, public employees, workers, and armed forces during organizational restructuring shall comply with the provisions of the Law on State Budget; the Law on Accounting and guiding documents. Whereby:

- For ministries and central agencies: Develop budget estimates for policy implementation, compile into the annual state budget estimate, and send to the Ministry of Finance for submission to competent authorities for approval.

- For local authorities:

+ Agencies and units prepare budget estimates, send them to the same-level financial agency to aggregate into the local state budget salary reform needs.

+ In case the local salary reform resources are insufficient, the central budget will support the insufficient difference.

Note: The settlement of budget for implementing policies for officials, public employees, workers, and armed forces when restructuring the apparatus is compiled into the annual financial report and budget settlement report of the agency, unit according to the requirements of the Law on State Budget, Law on Accounting, and guiding documents.

See detailed content of Circular 07 of 2025 on guidelines for determining financial resources, preparing budget estimates, management, usage, and settlement of funds for implementing policies for officials and public employees during the apparatus restructuring according to Decree 178/2024/ND-CP... here

What is the responsibility of tax authorities in implementing State budget revenue collection in Vietnam?

According to Article 5 of Circular 84/2016/TT-BTC, the responsibility of tax authorities in implementing state budget revenue collection is as follows:

- Promptly update information on the shared list, taxpayer data, and tax data on the Tax General Department's electronic portal.

- Coordinate with banks to sign and implement cooperation agreements on state budget revenue collection coordination.

- Support banks/state treasury agencies with expertise and technology during the implementation of state budget revenue collection coordination.

- Issue electronic tax submission transaction accounts for taxpayers according to the Ministry of Finance’s regulations on electronic transactions in the tax field; guide taxpayers in preparing tax payment lists or paying documents into the state budget; provide taxpayers with tax data to facilitate accurate and complete payment document preparation; confirm paid taxes as requested by taxpayers.

- Receive information on paid taxes from state treasury agencies and banks to serve tax management tasks; conduct reconciliation of collected amounts with the state treasury, banks, and taxpayers; address issues related to state budget revenue collection discrepancies.

- Coordinate with state treasury agencies in reconciling figures to ensure accurate matching of state budget revenues before finalizing tax accounting books.

- Consider suspending or terminating the participation in state budget revenue collection coordination with banks if they fail to meet state budget revenue collection coordination agreements or violate tax management laws.