Province-level administrative units merged in Vietnam under the Conclusion 126-KL/TW 2025? What are the duties and powers of the Ministry of Finance of Vietnam in tax administration?

Province-level administrative units merged in Vietnam under the Conclusion 126-KL/TW 2025?

On February 14, 2025, the Central Executive Committee issued Conclusion 126-KL/TW 2025 regarding several contents and tasks for continuing the arrangement and downsizing of the political system's organizational structure in 2025.

To be specific, in sub-item 3.4, Section 3 of Conclusion 126-KL/TW 2025, it clearly mentions the orientation to study merging several provinces during the current arrangement process, completing the organizational structure of the political system for the year 2025 and the 2025–2030 tenure as follows:

Continue to implement the arrangement and complete the organizational structure of the political system in 2025 and the 2025–2030 tenure

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3.2. Task the Communist Party of Vietnam to delegate the Government of Vietnam:

- Direct the Communist Party's Inspectorate and related agencies and units to urgently complete the scheme for reorganizing the inspection system, reporting to the Politburo at the meeting on February 18, 2025.

- Lead and direct the review, assessment, and reorganization of the operations of party organizations within state enterprises, general corporations, and state commercial banks in the direction of transferring grassroots party committees (enterprises) subordinate to the party committees of corporations and general corporations to local party committees following their production and business operations (reporting to the Secretariat by the end of Q2/2025).

- Preside, cooperate with the Central Organization Committee, the Communist Party's National Assembly delegation, related party committees, and organizations to study the orientation of continuing to eliminate the intermediate administrative level (district level); build a plan to continue arranging the commune level in line with the new organizational model, propose the organization, functions, tasks, powers, and responsibilities of the commune level; orient the merger of some provincial-level administrative units; and propose policy directions for amending and supplementing relevant legal and Communist Party regulations, reporting to the Politburo in Q3/2025.

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Thus, according to Conclusion 126-KL/TW, there is a mention of studying the removal of the intermediate administrative level (district level) and merging some provincial-level administrative units. These contents must be reported to the Politburo in Q3/2025.

Province-level administrative units merged in Vietnam under the Conclusion 126-KL/TW 2025? (Image from the Internet)

Ministry of Finance of Vietnam: What are guidelines for funding for downsizing the organizational structure?

The Ministry of Finance of Vietnam issued Circular 07/2025/TT-BTC guiding the determination of funding sources, budgeting, management, use, and settlement of funds for implementing policies for officials and public employees during the process of reorganizing the administrative apparatus according to Decree 178/2024/ND-CP.

To be specific, according to Circular 07/2025/TT-BTC, the Ministry of Finance of Vietnam provides guidance on funding for downsizing the organizational apparatus as follows:

(1) Use of recurrent budget estimates (section 1, Article 2 Circular 07/2025/TT-BTC):

- Pay costs to maintain the previous position's salary level or previous leadership allowance until the end of the term or appointment period for officials who stop holding their position or are appointed to lower positions due to organizational restructuring.

- Continue to pay the current salary (including allowances) for officials seconded to strengthen grassroots work.

- Implement salary increment policies and pay bonuses for related subjects.

- Pay bonuses to subjects according to regulations.

(2) State budget (section 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, government-attached bodies, and other central agencies, the funding will be ensured by the central budget.

- For officials and public employees and workers belonging to units managed by localities, the funding will be incorporated into the local salary reform needs.

(3) Budget estimation, allocation, use, and settlement (Article 5 Circular 07/2025/TT-BTC):

- The process of budget estimation, management, use, and settlement of the state budget for implementing policies related to officials and public employees, workers, and armed forces in executing organizational restructuring is in accordance with the Law on State Budget, the Accounting Law, and related guidelines. Specifically:

- For ministries and central agencies: Develop budget estimates for implementing policies, incorporating them into the annual state budget estimates and submitting them to the Ministry of Finance of Vietnam for approval by competent authorities.

- For localities:

+ Agencies and units prepare budget estimates and send them to the same-level financial authority for consolidation into the local state budget salary reform demands.

+ In cases where the local salary reform fund is insufficient, the central budget will support the shortfall.

Note: The settlement of funds for implementing policies concerning officials and public employees, workers, and armed forces in the execution of organizational restructuring is to be consolidated into the annual financial and settlement reports of the agencies and units following the Law on State Budget, the Accounting Law, and related guidelines.

What are the duties and powers of the Ministry of Finance of Vietnam in tax administration?

According to section 1, Article 15 of the Tax Administration Law 2019, the duties and powers of the Ministry of Finance of Vietnam in tax management are stipulated as follows:

The Ministry of Finance of Vietnam is responsible for assisting the Government of Vietnam in the unified state management of tax administration and has the following duties and powers:

- Issue legal normative documents on tax administration within its competency or submit them to competent authorities for issuance.

- Organize the implementation of tax management according to the provisions of this Law and other related legal regulations.

- Organize the preparation and execution of the state budget revenue estimates.

- Organize inspection and auditing of the implementation of tax laws and other related legal provisions.

- Handle legal violations and resolve complaints and denunciations related to the implementation of tax laws under its authority.

- Organize the implementation of international cooperation in taxation.

- Coordinate with the Ministry of Planning and Investment and other related ministries to guide the implementation of independent valuation of machinery, equipment, and technological chains as per the Investment Law's regulations.