Plan to Restructure Tax Authorities

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February 28, 2025

According to Report 219/BC-BNV (2025) by the Ministry of Home Affairs on the Supplementary Report, which details efforts to restructure and downsize the Government’s organizational framework, the Ministry of Finance is expected to implement the following changes:

Reorganize the General Department of Taxation into the Tax Department, comprising 12 departments/offices.
Consolidate the existing 63 provincial and city Tax Departments into 20 regional-level Tax Departments.
Restructure 420 district-level and inter-district Tax Departments into 350 inter-district regional Tax Teams.
Following this reorganization, approximately 1,005 out of 4,141 focal points (24.27%) will be eliminated.

As a result, the number of tax management focal points within state agencies will be significantly reduced through the consolidation of existing units. The current 63 provincial and city tax departments will be merged into 20 regional tax departments, each responsible for overseeing a broader area that includes multiple provinces and cities. Similarly, lower-level tax management structures will also be streamlined, reducing the number of management points by up to 24.27%.

This restructuring, which aims to improve efficiency by reducing the number of tax management bodies while expanding their jurisdiction, may temporarily impact businesses. Changes may include adjustments to direct tax-controlling authorities and modifications to relevant tax administrative procedures such as forms, registration, reporting, declaration, and tax payment. Until the tax system restructuring is finalized and approved, the full impact on administrative procedures and tax management for businesses remains uncertain.

Additionally, other departments under the Ministry of Finance—including the General Department of Customs, the State Treasury, the General Department of State Reserves, the General Statistics Office, and Vietnam Social Security—are also being considered for restructuring to reduce management points. As the restructuring process continues, further adjustments are expected to enhance stability and minimize disruptions to businesses. Russell Bedford KTC will continue to monitor and provide updates on these changes to help businesses prepare and respond effectively to new requirements.