Circular 07 of 2025: What are guidelines on funding for downsizing the organizational structure of the Ministry of Finance of Vietnam?
Circular 07 of 2025: What are guidelines on funding for downsizing the organizational structure of the Ministry of Finance of Vietnam?
The Ministry of Finance of Vietnam has issued Circular 07/2025/TT-BTC, providing guidance on determining funding sources, budgeting, management, usage, and final accounts of funds for implementing policies related to officials and public employees during the organizational restructuring process as per Decree 178/2024/ND-CP.
Specifically, according to Circular 07 of 2025, the Ministry of Finance of Vietnam guides the funding for downsizing the organizational structure as follows:
(1) Utilizing the regular expenditure budget forecasts (Clause 1, Article 2 of Circular 07/2025/TT-BTC):
- Payment for retaining previous position salary or leadership position allowance until the end of the term or appointment period for leaders and managers who no longer hold their positions or are appointed to lower positions due to organizational restructuring.
- Continuing to pay current salaries (including allowances) to officials assigned to tasks at the grassroots level.
- Implementing salary grade advancement and paying bonuses to the relevant individuals.
- Paying bonuses to individuals as per the regulations.
(2) State Budget (Clause 2, Article 2 of Circular 07/2025/TT-BTC):
- For officials and public employees, workers, and armed forces under the management of ministries, ministerial-level agencies, government agencies, and other central agencies, the funding will be ensured by the central budget.
- For officials and public employees and workers managed by local units, the funding will be integrated into the local salary reform needs.
(3) Budgeting, allocating, using, and finalizing funds (Article 5 of Circular 07/2025/TT-BTC):
- The preparation of budget estimates, management, usage, and finalizing of the state budget funds for implementing policies related to officials and public employees, workers, and armed forces during the organizational restructuring process is governed by the regulations of the Law on State Budget, Accounting Law, and guiding documents. Specifically:
- For central ministries and institutions: Prepare budget estimates to implement policies, compile them into the annual state budget estimates, and submit to the Ministry of Finance of Vietnam for approval by the competent authorities.
- For localities:
+ Agencies and units prepare budget estimates and send them to the financial authorities at the same level for inclusion in the local salary reform demands in the state budget estimates.
+ If a local salary reform source is insufficient, the central budget will support the shortfall.
Note: The finalization of funds for implementing policies concerning officials and public employees, workers, and armed forces during organizational restructuring will be consolidated into the annual financial and final accounts report of the agency or unit, as regulated by the Law on State Budget, Accounting Law, and guiding documents.
See detailed content of Circular 07 of 2025 on guidance for determining funding sources, budgeting, management, usage, and finalizing funds for implementing policies concerning officials and public employees during the organizational restructuring as per Decree 178/2024/ND-CP... here
Circular 07 of 2025: What are guidelines on funding for downsizing the organizational structure of the Ministry of Finance of Vietnam? (Image from the Internet)
Shall tax authorities collect the state budget revenue in Vietnam?
According to the provisions in Clause 1, Article 55 of the Law on State Budget 2015 as follows:
Organizing state budget revenue Collection
- Budget-revenue collecting agencies include finance agencies, tax agencies, customs agencies, and other agencies authorized by the competent state authority to organize state budget revenue collection.
- Only budget-revenue collecting agencies are allowed to organize budget revenue collection.
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Thus, as per the above provisions, tax authorities are allowed to organize the collection of state budget revenue.
What are responsibilities of tax authorities in collecting state budget revenue in Vietnam?
According to Article 5 of Circular 84/2016/TT-BTC on the Responsibilities of tax authorities in implementing state budget revenue collection:
- Promptly update common data categories, taxpayer information, and tax obligations data on the General Department of Taxation's electronic portal.
- Collaborate with banks to sign and implement cooperation agreements on state budget revenue collection.
- Support banks/state treasury in operations and techniques during the implementation of coordinated state budget revenue collection.
- Issue electronic tax payment transaction accounts to taxpayers in accordance with the Ministry of Finance of Vietnam regulations on electronic transactions in the tax sector; guide taxpayers in preparing tax declaration forms or payment documents for the state budget; provide taxpayers with tax obligation data to facilitate the accurate and complete preparation of payment documents; confirm paid tax amounts upon taxpayer request.
- Receive tax payment information from the state treasury and banks to support tax management; reconcile tax collections with the state treasury, banks, and taxpayers; handle discrepancies related to state budget revenue.
- Coordinate with the state treasury in reconciling data, ensuring accuracy of state budget revenue before closing tax accounting records.
- Consider suspending or terminating participation in coordinated budget revenue collection with banks if banks fail to meet cooperation agreements or violate tax management laws.
