Brian Jeffrey
The Ministry of Finance (MOF) has put forward proposals to the Government aimed at revising organizational structures within the ministry, suggesting a reshaping of regional tax offices to better align with newly designated provincial administrative units.
The present 20 regional tax offices will be transformed into 34 tax offices for provinces and centrally governed cities, resulting in an increase of 14 units.
During a press conference on June 25, Mai Son, Deputy Director of the Tax Department (MOF), indicated that restructuring tax authorities to correspond with the newly formed localities would yield numerous benefits for the tax sector.
In his address to the press, Mai Son emphasized that realigning tax authorities with the newly established localities presents various advantages for the taxation field.
Son pointed out that a vertically organized tax authority adheres to global standards, clearly stating the scope of tax jurisdiction in international dealings, tax agreements, and cross-border transactions.
This framework will facilitate the management of revenue streams, reinforcing the central government’s fiscal role while allowing greater freedom for local financial management.
Consequently, this will enable a smoother integration of tax policy, administrative improvements, and operational procedures throughout the tax system.
Nevertheless, Vietnam’s unique circumstances link tax authorities closely with local government, as tax management and collection are influenced by national and local socio-economic conditions.
The breadth of tax oversight encompasses a wide range of taxes related to individuals, non-agricultural households, enterprises, corporations, and various economic sectors.
“Organizing 34 tax units will significantly enhance tax management, support the growth of tax authorities, and benefit citizens and businesses,” said Son.
He acknowledged that while the existing model of regional tax offices has its benefits, it requires refinement to boost operational productivity. He recognized that the transition might encounter obstacles, particularly given that a large portion of the workforce in the tax sector consists of women.
“The development of a comprehensive database is progressing, approaching completion. This system will assist in simplifying operations, modernizing tax administration, and reducing the necessity for tax officials to travel,” Son noted.
He assured that the transition from 20 regional tax offices to 34 provincial and city tax offices is unlikely to disturb businesses and taxpayers.
With the establishment of new ward or commune-level administrative units, taxpayers will be reassigned to new jurisdictions to ensure continuity in tax management. Even without changes in administrative boundaries, the tax sector will still advance significant reforms such as system modernization and personal tax identification number updates.
He stated that the tax sector would ensure comprehensive and timely communication so taxpayers are informed about their new managing units to prevent any disruptions.
“Tax officials will transition to new jurisdictions, ensuring taxpayers experience no changes or disruptions in meeting their tax responsibilities,” he clarified.
As of March 1, 2025, the General Department of Taxation (Ministry of Finance) will officially be known as the Tax Department, functioning within a three-tier structure: a central agency with 12 operational divisions, 20 local tax offices, and 350 district-level tax teams.
This configuration aims to enhance operational efficiency, improve management, and align with the reorganization of provincial administrative units, as well as the two-tier local government framework.
However, MOF reported a significant number of tax officers, around 4,500, requesting voluntary redundancy shortly after the reorganization following Decree No 178/2024 (amended by Decree 67/2025/ND-CP). This represents over 10% of the total workforce within the tax sector, which comprises more than 37,000 positions at the tax office level.
The highest rates of resignation were noted in mountainous provinces, including Cao Bang, Bac Kan, Yen Bai, Lao Cai, Son La, Lai Chau, and Dien Bien, exceeding 30%.
The challenges faced by individuals in remote, mountainous, and border regions contribute to this trend, especially in areas managed by Regional Tax Offices VI (covering Bac Giang, Lang Son, Cao Bang, Bac Kan), VII (Thai Nguyen, Tuyen Quang, Ha Giang), and IX (Son La, Dien Bien, Lai Chau), where the distance from home to tax office headquarters is often over 100 km with difficult access. Daily travel can take between 2 to 4 hours, primarily using personal vehicles.
