Proposed Tax Cuts for Active Digital Citizens: Expert Insights

The Ministry of Public Security has recently drafted a government resolution on digital citizen development, introducing several incentives to encourage citizens to actively engage with digital services.

Specifically, the draft proposes three significant tax incentives for digital citizens completing administrative procedures online: a 100% exemption, a 50% reduction, and a 10% reduction.

To qualify for these tax benefits, digital citizens must first be Vietnamese nationals with verified digital identities, capable of using public and digital services securely and legally. They must also contribute data and participate in national digital transformation efforts. Digital citizens have specific rights and responsibilities regarding their online identity, data usage, and behavior.

Mr. Đinh Hoàng Kiên, founder of VedaX LLC, describes the proposed tax incentives tied to the concept of “digital citizens” as a bold move, reflecting a significant shift in state management thinking.

“Instead of imposing mandates, the government is choosing to incentivize citizens to participate in digital transformation through tangible benefits, similar to how tech companies attract and retain users. This approach demonstrates a transition from a management mindset to a service-oriented one, putting citizens at the center. It also has the potential to create long-term impacts on digital service usage habits,” Mr. Kiên commented.

He suggests that implementing the policy in phases, with appropriate scale and scope, is essential for such a novel and far-reaching initiative, providing a basis for evaluation and adjustments.

Regarding digital citizen criteria, Mr. Kiên believes that requirements such as digital identification, secure service usage, and participation in digital transformation are not vague.

“These are clear metrics to encourage citizens to enhance their digital awareness and skills. When benefits are tied to participation and knowledge levels, citizens will be motivated to learn and adapt, laying the foundation for a digital government,” he stated.

Meanwhile, a representative from a technology company in Ho Chi Minh City suggests that effective digital citizen development requires quantifiable criteria, possibly including direct assessments and scoring on digital platforms.

Citizens who meet specific requirements and achieve certain scores would be recognized as digital citizens and enjoy corresponding benefits. Linking benefits to tangible outcomes would motivate citizens to enhance their digital skills and actively engage with online public services.

“Integrating these criteria, assessments, and incentives directly into VNeID could help it rapidly evolve into a national ‘super app.’ In the long term, this approach not only accelerates digital transformation but also contributes to a more modern, intelligent, and convenient digital lifestyle for citizens,” the representative concluded.