Vietnam: What is the roadmap for tax policy reform under Resolution 98?

What is the roadmap for tax policy reform under Resolution 98 in Vietnam?

Under the tasks and solutions stipulated in Directive 27-CT/TW of 2023 by the Politburo on enhancing the leadership of the Communist Party of Vietnam in practicing thrift and combating wastefulness, the Government of Vietnam issued an Action Program to implement Directive 27-CT/TW of 2023, which includes the content of the roadmap for tax policy reform.

According to Section 4, Part 2 of the Program attached to Resolution 98/NQ-CP of 2024:

II. TASKS AND SOLUTIONS

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4. Promote state management, enforce discipline, implement rigorous thrift and combat wastefulness, and enhance the efficiency of managing and utilizing national resources

a) Key tasks and solutions

- Enhance the efficiency of managing and utilizing national resources, especially in the management and use of resources, state budget, and public assets.

- Intensify tax administration and expedite the roadmap for tax policy reform according to the Tax System Reform Strategy to 2030 approved by the Prime Minister of Vietnam in Decision No. 508/QD-TTg dated April 23, 2022.

- Improve the quality of forecasting, preparing, and evaluating state budget revenue and expenditure estimates; ensure the progress and quality of public investment projects to enhance the efficient use of the state budget.

- Develop solutions to definitively resolve long-standing issues for major national projects, key projects, ODA-funded projects, inefficient BOT, BT projects causing significant losses and wastefulness; underperforming commercial banks; projects halted as per the conclusions of functional agencies, and promptly bring these assets into serving socio-economic development.

- Exploit, use land, resources, minerals sustainably and efficiently, minimizing losses, waste, and negative environmental impacts.

- Enhance transparency and public disclosure in the use of the state budget, public assets, national resources; elevate the accountability of state management agencies and their heads for causing losses and wastefulness of the budget and public assets.

- Promote the restructuring of the political system and public service providers towards a more streamlined, efficient, and effective organization; strictly implement the target of workforce downsizing for the period 2021 - 2026; continue improving job positions linked to public sector staffing, saving the state budget spent on organizational and human resources.

- Strengthen the application of science and technology, digital transformation, administrative reform, and socialization of public service provision.

- Intensify inspection, audit, supervision, and monitoring of the implementation of the Communist Party's policies and the state laws on practicing thrift and combating wastefulness, focusing on fields, areas, and positions prone to wastefulness and negative acts, areas with many complaints, denunciations, and public concerns.

- Promptly detect, prevent, and strictly handle organizations and individuals violating, causing losses and waste of resources; strictly implement conclusions and recommendations of functional agencies, and recover money and assets for the state.

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Thus, to promote state management, enforce discipline, implement rigorous thrift and combat wastefulness, and enhance the efficiency of managing and utilizing national resources, the roadmap for tax policy reform according to the Tax System Reform Strategy to 2030, approved by the Prime Minister of Vietnam in Decision 508/QD-TTg of 2022, will be expedited and tax administration efforts intensified.

What is the roadmap for tax policy reform under Resolution 98 in Vietnam? (Image from the Internet)

What are the current rules for tax administration in Vietnam?

According to Article 5 of the Law on Tax Administration 2019, the current rules for tax administration are as follows:

- All organizations, households, household businesses, individuals shall pay their taxes in compliance with the law.

- Tax authorities and other State agencies tasked with revenue administration shall implement tax administration as prescribed in this Law and other relevant provisions, ensuring publicity, transparency, equality and ensuring legitimate rights and benefits of taxpayers.

- Agencies, organizations, individuals are responsible for participating in tax administration as prescribed by law.

- Implement reform of administrative procedures and application of modern information technology to tax administration; apply tax administration rules in accordance with international practice, including regulations of tax liabilities determined by nature of activities and transactions, regulations of risk management in tax administration and other regulations suitable with Vietnamese conditions.

- Take priority measures when carrying out tax-related procedures for imported and exported goods in compliance with provisions on customs and Governmental provisions.

What are the prohibited activities in tax administration in Vietnam?

According to Article 6 of the Law on Tax Administration 2019, the prohibited acts in tax administration include:

- Collusion, connection, cover-up between taxpayers and tax officials, tax authorities for price transfer and/or tax evasion.

- Inconvenience, burden to tax payers.

- Taking advantage to seize or put tax money to illegal use.

- Deliberate avoidance of declaration or inadequate, late, inaccurate declaration of tax liabilities.

- Obstructing operations of tax officials.

- Using tax identification numbers of other persons to conduct violations against the law or allowing other persons illegal use of one’s tax identification number.

- Selling goods and providing services without issuance of invoices as prescribed by law, using illegal invoices and using invoices illegally.

- Alteration, misuse, illegal access or destruction to taxpayer information system.