Slashing Tax Administrative Procedures by 44%: A Game-Changer for Efficiency

The Ministry of Finance is drafting an amended Tax Administration Law, aiming to slash administrative procedures by up to 44%. This reform prioritizes a taxpayer-centric approach to tax management.

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According to statistics, the current tax system comprises over 200 administrative procedures. Despite multiple rounds of simplification, citizens and businesses still face redundant steps in declarations, confirmations, and document submissions. The new draft aims to eliminate or consolidate dozens of procedures related to tax registration, declaration, payment, refunds, and exemptions. It also seeks to streamline documentation, reduce declaration fields, shorten processing times, and enhance automation.

Specifically, processes such as reissuing tax registration certificates, notifying tax codes, and declaring value-added tax (VAT) and personal income tax (PIT) will be merged into a unified form. The processing time for many procedures is expected to decrease from 5 days to 3 days. Several declarations will be pre-populated with data from the national electronic information system, allowing taxpayers to simply confirm details instead of re-entering them.

This proposal aligns with Decision 1848/QĐ-TTg, signed by the Prime Minister, which approves the plan to cut and simplify over 500 administrative procedures in finance, with tax procedures accounting for the largest share.

According to the Ministry of Finance, aggressive reductions aim not only to ease compliance burdens but also to drive comprehensive digital transformation in tax administration, moving toward “e-taxation – smart management.”

If approved, the simplified procedure system will significantly reduce administrative costs, boost labor productivity, and enhance national competitiveness. Businesses will no longer need to prepare bulky documents or submit them multiple times to different agencies. Tax authorities will also find it easier to monitor, control, and detect irregularities thanks to standardized data.

However, transitioning to a “fewer procedures – more technology” model demands rigorous training and oversight. At the local level, if tax officials lack digital skills or small business owners are unfamiliar with online processes, “reducing procedures” on paper could translate to “increasing difficulties” in practice.

To achieve meaningful goals, this reform must be accompanied by a transparent feedback mechanism, enabling taxpayers to provide input, report issues, and track their applications online. Regular audits should also ensure that reduced procedures genuinely save time, costs, and legal risks for citizens and businesses, rather than being merely symbolic.

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