Tax Authority Seeks Feedback on Draft Tax Administration Law

After more than five years of implementation, Law on Tax Administration 38/2019/QH14 has significantly contributed to modernizing tax administration and easing compliance for taxpayers. Nevertheless, the rapid expansion of the digital economy and the rise of new business models have made a comprehensive revision of the law necessary.

The amended law aims to modernize tax administration and ease taxpayer compliance

In an open letter dated August 25 to the business community, business households, individual entrepreneurs, and taxpayers nationwide, the Department of Taxation under the Ministry of Finance said that on August 15, 2025, the Ministry of Finance issued Official Letter 12624/BTC-CT requesting wide feedback on the draft law. The consultation is being conducted in a constructive and responsible manner, aiming to encourage the participation of enterprises, business households, and taxpayers across the country.

According to the Ministry of Finance, input from businesses, households, and taxpayers is essential for building a modern, effective, efficient, and fair tax administration system that benefits the nation, the business community, and all citizens. “The Department of Taxation greatly values this input and hopes to continue receiving the attention, engagement, and feedback of all stakeholders so that the amended Law on Tax Administration can be effectively implemented and meet society’s expectations for reform,” it emphasized.

On August 1, 2025, the National Assembly Standing Committee issued Resolution 92/2025/UBTVQH15 adjusting the 2025 legislative program, adding the amended Law on Tax Administration to this year’s agenda.

The Ministry of Finance, through the Department of Taxation, is urgently finalizing the draft law with the aim of achieving comprehensive reform in tax administration, addressing practical needs, and codifying key policies from the Party’s major resolutions.

Specifically, the draft law follows key orientations, including Resolution 57-NQ/TW on breakthroughs in science, technology, innovation, and national digital transformation; Resolution 59-NQ/TW on international integration in the new context; Resolution 66-NQ/TW on reforming lawmaking and enforcement to meet development needs in the new era; and Resolution 68-NQ/TW on private sector development.

The draft focuses on several core areas:

First, promoting modernization and comprehensive digital transformation in tax administration by applying advanced, integrated IT systems to accelerate digitalization with three main pillars: facilitating taxpayers, strengthening management capacity, and digitizing tax processes.

Second, encouraging voluntary compliance based on taxpayer risk classification and compliance levels to promote self-awareness while enhancing efficiency.

Third, reducing administrative procedures and costs while strengthening coordination among state agencies, organizations, individuals, and tax authorities through data sharing and system integration.

Forth, enhancing decentralization and streamlining online procedures by handling administrative processes through a single, centralized portal regardless of jurisdiction to ensure greater transparency and convenience, and addressing gaps in the current law while adapting to new business models, including completing the legal framework for technology- and platform-based activities, managing household and individual businesses after the removal of the fixed-tax regime, and encouraging their transition to enterprise models.

By Huong Hau, Vietnam Business Forum