Tax System Reform for Enhanced Support to Taxpayers

The General Department of Taxation (GDT) recently held a mid-term review conference on the implementation of the Tax System Reform Strategy through 2030. Mr. Mai Xuan Thanh, General Director of GDT, said that achieving the strategy's goals must align with practical needs, prioritizing maximum support for taxpayers.

Vietnam aims to modernize tax administration comprehensively by aligning with international practices 

On April 23, 2022, the Prime Minister issued Decision 508/QD-TTg on ratification of the Tax System Reform Strategy to 2030. Accordingly, Vietnam's tax policy system will be synchronously and consistently completed in accordance with international practices while matching resource requirements for implementation of the 10-year Socioeconomic Development Strategy 2021-2030.

Vietnam will synchronize major taxes, fees and charges such as value added tax (VAT), special consumption tax, export tax and import tax, corporate income tax, personal income tax, resource tax, agricultural land tax, non-agricultural land tax, environmental protection tax, other fees, charges and revenues of the State Budget.

To implement the Tax System Reform Strategy to 2030 according to Decision  508/QD-TTg, GDT developed and submitted to the Ministry of Finance the action program for implementation of the strategy as per Decision 2438/QD-BTC dated November 22, 2022 of the Minister of Finance and the Tax System Reform Plan to 2025 as per Decision  2439/QD-BTC dated November 22, 2022 of the Minister of Finance to specify the goals and solutions for each 5-year and annual period to comprehensively reform tax management.

Closely following the strategy and the action program for the 5-year plan, GDT built and released the Medium-term Tax Administration Plan in 2023-2025 for implementation of the Tax System Reform Plan to 2025 according to Decision 218/QD-TCT dated March 22, 2023 of the GDT General Director with key reform contents in key areas of tax administration to ensure consistency and compliance with the proposed orientations, objectives, viewpoints and solutions.

To effectively carry out the Tax System Reform Plan to 2025, GDT General Director Mai Xuan Thanh requested that it is extremely necessary to evaluate the implementation results of the Tax Administration Reform Plan in 2023-2024 to propose key tasks for tax management reform in the coming time.

He requested the Reform and Modernization Board, which is responsible for implementing all opinions and additional solutions proposed (if any) from relevant units and working with each relevant unit to evaluate and specify each target in the strategy, to report on the matters of concerns to GDT for consideration and decision.

“Remarks and proposed options for executing plans must be substantial and practical, with special attention paid to general plan objectives. Relevant agencies need to continue to research, complete and deploy comprehensive digital transformation solutions to tax administration mentioned in the plan to facilitate and support taxpayers and enable effective tax administration,” he noted.

At the conference, an official from the Reform and Modernization Board stated that specific key targets will be established for each area, allowing for a comparison of achievements and shortcomings against these targets. The reform contents will be assessed based on their implementation results, categorized as: completed, completed on schedule, not completed, and not implemented as planned.

At the function, representatives of GDT units remarked and reviewed their responsible implementation results of the strategy and proposed solutions and action plans to add reform goals within their jurisdiction upon GDT’s recommendations.

The Tax System Reform Strategy to 2030 underlines institutional reform; innovation and communicative capacity strengthening, and support for taxpayers; and innovation and capacity strengthening for tax registration, tax declaration, tax payment, tax exemption, tax reduction, tax refund, tax statistics and tax accounting. At the same time, the strategy gives emphasis on modernization of the information technology system for tax administration; modernization of facilities, administration and finance; and modernization of fiscal revenue forecasting.

By Le Hien, Vietnam Business Forum