Presenting a proposal on the Tax Management Law (amendment) project at the 10th Session of the 15th National Assembly on November 4, Minister of Finance Nguyen Van Thang stated that the law (amendment) is structured to innovate the apparatus in service of taxpayers, building a streamlined, effective, and efficient system, focusing on taxpayers as the center of the service, and covering more deeply the issues arising in practice, especially those related to cross-border and digital economy.
According to the minister, the Draft Law has updated the regulations in Chapter II on taxpayer management, tax declaration, tax calculation, and tax payment to comply with the law on electronic transactions, while significantly reducing administrative procedures. The government has supplemented regulations on managing related-party transactions to prevent transfer pricing, in line with the OECD standards.
Furthermore, the regulations on tax inspection and examination have also been revised and supplemented towards simplification, while closely linked with the application of information technology to enhance efficiency and minimize risks in tax debt enforcement.
The Economic and Financial Committee of the National Assembly highly agrees with the orientation to amend the Tax Management Law. However, the reviewing agency also suggested clarifying some new points, especially a regulation that allows tax authorities to use funds to supplement income for their civil servants and employees in case the budget revenue exceeds the estimate assigned by the National Assembly.
The Tax Management Law (Amendment) Project aims for comprehensive modernization by automating tax refund, exemption, and reduction procedures, shortening processing time, and facilitating taxpayers.
However, the reviewing agency stresses the need for strict control mechanisms to prevent fraud, with clear criteria for applying automatic refunds. The draft allows post-audit tax adjustments provided they do not reduce tax obligations, though stricter conditions are recommended to prevent loopholes.
It also reviews the authority of tax management bodies, shifts household businesses to a revenue-based tax system using e-invoices, and strongly delegates authority to the Government and Ministry of Finance to enhance flexibility and timely management.
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