What are the general objectives of the tax reform strategy until 2030 in Vietnam?

What are the general objectives of the tax reform strategy until 2030 in Vietnam?

According to Article 1 of Decision 508/QD-TTg of 2022, the general objectives of the Tax reform strategy until 2030 are as follows:

- Continue to perfect tax policies and restructure state budget revenues with a view to covering all of revenues, expanding tax collection basis, especially the basis for new tax collections, and conforming to international conventions; ensuring that the proportion of domestic tax collections and the proportion of indirect taxes to direct taxes are at a reasonable level; making sure that taxes, fees and charges imposed on property, natural resources, and environmental protection are properly exploited; minimizing the integration of social policies into tax legislation and tax exemption or reduction policies in order to ensure neutrality in tax policies, strive for a synchronous tax system with a sustainable structure, ensure proper resources are mobilized to feed the state budget, and at the same time; contribute to creating a favorable and fair investment and business environment, encouraging investment, promoting competition, regulating income reasonably and in line with the process of integration and development of the economy.

- Build a modern, streamlined, efficient and effective tax system of Vietnam; unified, transparent, intensive and professional management of taxes, fees and charges by utilizing the method of risk management, boosting information technology application, simplifying administrative procedures, reducing compliance costs of the public and businesses as taxpayers; at the same time, centering tax administration on the electronic tax platform and three basic pillars, including a complete, synchronous, modern and integrated regulatory framework for tax administration; professional, upright and innovative personnel; modern and compatible information technology meeting tax administration requirements in the digital economy context.

What are the general objectives of the tax reform strategy until 2030 in Vietnam? (Image from the Internet)

What are the regulations on the modernization of tax administration in Vietnam?

According to Article 11 of the Tax Administration Law 2019, the modernization of tax administration is currently being implemented as follows:

- Tax administration shall be modernized in terms of management methods, administrative procedures, apparatus, official and public employee force; widely apply modern techniques and information technology to accurate information databases on taxpayers so as to control all taxable entities and tax bases; ensure fast and accurate estimation of revenues of the state budget; identify and take action against tax-related difficulties, violations timely; improve validity and efficiency of tax administration. Based on the socio-economic development of each period of time, the State shall ensure sufficient financial resources for the implementation of the provisions in this clause.  

- The State shall enable organizations and individuals to participate in the development of advanced technology and techniques with a view to applying modern methods of tax administration, carrying out e-transactions and electronic tax administration; boosting the development of payment services via commercial bank systems and other credit institutions in order to gradually limit cash transactions from taxpayers.

- Tax authorities shall build information technology systems according to the requirements on the modernization of tax administration, technical standards and data formats of electronic invoices, records and tax dossiers with an aim to carrying out e-transactions between taxpayers and tax authorities and between tax authorities and relevant authorities, organizations and/or individuals.

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.