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The Nghệ An provincial tax department announced that one notable aspect of the 2025 Tax Management Law is the push for digital transformation in tax administration. Under Articles 32, 33, and 35, the tax administration agency prioritizes applying modern information technology and automation in data collection, processing, assessing compliance levels, and classifying taxpayers by risk. The tax authority uses the Tax Information Management System to integrate and process data to support risk management and automate operational activities. At the same time, this system is also used to issue documents, notices, and tax administrative decisions automatically. Documents are signed with the authority's digital signature and have legal effect equal to paper documents. The law also amends and supplements mechanisms for automatic tax refunds, exemptions, and reductions based on data, risk management criteria, automated processing procedures, and ensuring information security. Tax debts outstanding before July 1, 2026 are processed under the new law. According to Article 53 of the 2025 Tax Management Law, taxes exempted, reduced, or not collected under legal provisions of each period that arise before July 1, 2026 shall continue to be processed under the 2019 Tax Management Law. Meanwhile, overdue tax amounts up to June 30, 2026 will be processed according to the 2025 Tax Management Law. In administrative procedures, the new law does not create new administrative procedures but amends and supplements seven groups of administrative procedures: tax registration; tax declaration; tax payment; tax refunds, exemptions and reductions; debt settlement and debt cancellation; tax inspection; and tax assessment. Expanded provisions for individuals and organizations abroad and those doing business on digital platforms. Under Article 2(1) of the 2025 Tax Management Law, taxpayers are defined more specifically to include foreign organizations, individuals with business activities in Vietnam or with income arising in Vietnam. Additionally, foreign organizations and individuals operating on e-commerce platforms or other digital platforms are also taxpayers under tax law. The law also adds provisions for grouping taxpayers to determine priority treatment, apply appropriate management measures, and assess the level of compliance and risk. The grouping criteria include industry, sector, legal form, scale of operation, revenue, budget contribution, and history of compliance. Expanded prohibitions. Under Article 8 of the 2025 Tax Management Law, certain acts are newly prohibited, such as using a position to disclose or leak taxpayer information in violation of regulations; misrepresenting audit results or violating tax law. There are also acts of obstruction, delay, or failure to provide information for tax audits or supervision; creating or issuing electronic invoices or documents illegally; unauthorized access, destruction of taxpayer information systems, or disseminating false information that affects the tax authority and taxpayers. Another new point is that a taxpayer may file additional tax declarations within five years from the end of the tax filing deadline for a tax period with errors if conditions are satisfied. Self-determination of revenue for tax calculation by households and individual businesses. Under Article 13 of the 2025 Tax Management Law, households and individual businesses determine whether their revenue from activities of production and trading of goods and services fall under taxable or non-taxable subjects. Taxpayers file tax declarations and compute taxes for each tax type and period. The tax authority relies on its tax management database to provide information to support filing and tax calculation. For households and individuals operating on e-commerce platforms or other digital platforms, the law also adds provision on withholding, declaration, and payment of tax on behalf of platform managers in certain cases. Many changes to personal income tax. According to the Nghệ An Tax Department's summary, the Personal Income Tax Law 2025 introduces several notable changes. Specifically, the progressive tax brackets are shortened from seven levels to five with rates of 5%, 10%, 20%, 30%, and 35%. The personal deduction for the taxpayer themselves is adjusted from 11 million dong per month to 15.5 million dong per month. The deduction for each dependent increases from 4.4 million dong per month to 6.2 million dong per month. The law also adjusts the annual revenue threshold not subject to income tax for households and individual businesses from 200 million dong per year to 500 million dong per year; and adjusts the corresponding non-taxable threshold for value-added tax to 500 million dong per year. For households and individuals with revenue from 500 million dong to 3 billion dong per year, the law adds a method of computing the tax on income and allows choosing between the tax method based on the revenue share or on the income. Additionally, the Personal Income Tax 2025 adds a provision applying a 0.1% rate on each transfer price for transfers of gold bullion. The Nghệ An Tax Department notes that the above rules will take effect from July 1, 2026. Taxpayers should actively update to implement the rules correctly and protect their rights. Tax authority notice: 383 taxpayers to contact the tax authority immediately.
