Digital tax administration undergoing significant tech-driven upgrades in a comprehensive overhaul
The General Department of Taxation (GDT) under the Ministry of Finance recently held a workshop in Hanoi from September 17 to 19, aiming to review and refine tax administration processes. The event marked a significant step in advancing broad-based reform, bringing Vietnam's tax administration system closer to international standards.
Dang Ngoc Minh, deputy director general of the GDT, noted that tax administration procedures are being standardized by the tax authority. The focus of the workshop was on redesigning the entire framework to make it leaner, more integrated, and technology-driven.
Participants highlighted that with effective use of digital technology and big data, the tax sector can significantly improve its analytical and forecasting capacity, while also making it easier and faster for businesses and individuals to fulfill their tax obligations. However, practical implementation has revealed certain limitations, including a lack of interconnectivity between processes and underutilisation of digital tools.
Most delegates at the workshop agreed that the restructuring of tax administration is not just about reducing cumbersome procedures - more importantly, it is about creating a transparent, modern, and taxpayer-friendly management mechanism. The aim of the workshop was to build a modern, transparent, and streamlined tax management system.
GDT deputy chief Minh urged participants to thoroughly review each component of the draft law, assessing its practicality and relevance. He highlighted three priorities: ensuring procedures are rational and consistent, avoiding duplication while supporting smooth coordination from central to local levels, and assessing the feasibility of implementation by considering resources, human capital, infrastructure, data systems, and interdepartmental coordination.
The amended Law on Tax Administration is expected to accelerate digital transformation, enhance voluntary compliance, and strengthen risk management through its systematic application across all operations. The Ministry of Finance is advancing major tax reforms to support private sector development, aligning with national strategies and removing legal barriers to foster innovation, growth, and green transformation.
One of the key reforms suggested by the Ministry of Finance is a major overhaul of personal income tax, aiming to reduce complexity, ease compliance, and encourage economic growth through a fairer, simplified structure. This reform is part of the ministry's efforts to boost fairness and growth in the tax sector.
Minh emphasised the importance of all attendees contributing constructively, with clear, practical feedback. All comments would be objectively and fully recorded by the workshop secretariat for incorporation into the final draft. The tax sector has embarked on a major restructuring and efficiency drive to strengthen service delivery for citizens and businesses.
However, it is worth noting that in some stages, responsibilities between administrative levels and departments remain unclear, posing challenges for both taxpayers and tax officials. This is an area that requires further attention and clarification in the restructuring process.
In conclusion, the workshop series marked a significant step towards modernising Vietnam's tax administration system. With the focus on standardization, digital transformation, and practical implementation, the tax sector is poised to deliver more efficient, transparent, and taxpayer-friendly services.
