Vietnam adopts data-driven tax system
Tax Reform in the Digital Era: A Pathway to Modernization
On May 21, the Department of Taxation organized a significant conference titled “Tax Reform in the Digital Era: From Global Trends to Vietnam’s Action Strategy.” The event aimed to address the challenges faced by the tax sector, evaluate existing gaps, and explore opportunities for innovation in building a modern, transparent, and internationally compatible tax system.
Director General of Taxation, Mai Xuan Thanh, emphasized that the successful implementation of the nationwide e-invoice system and the operation of the eTax Mobile platform are important milestones in the digitalization of Vietnam’s tax administration. However, he warned that complacency could lead to the tax sector falling behind global trends.
According to studies by the OECD, Deloitte, and EY, by 2025, approximately 86% of countries worldwide will be transitioning towards a “Tax Administration 3.0” model, where tax calculation and management are conducted almost in real time through digital data systems. Meanwhile, more than 82% of large global corporations are restructuring their operations to meet growing requirements for data transparency and ESG-driven development standards. Additionally, many countries are accelerating the implementation of the global minimum tax (GMT), carbon taxes, and integrated tax models designed for the digital economy.
“Although the tax sector is managing an enormous volume of e-invoice data, there remains a situation where raw data is abundant while analytical intelligence is still lacking,” Thanh said. “Management thinking that relies heavily on manual post-audit methods will no longer be suitable when businesses and the broader economy are operating on digital and real-time data platforms.”
In response to these challenges, the tax chief called on departments and units across the sector to engage in substantive and action-oriented discussions. He outlined three key priorities:
- Confronting reality and accurately assessing existing gaps: Vietnam’s tax administration model must be directly benchmarked against international practices and global tax development trends.
- Frank and practical debate focused on core issues: Superficial consensus should be avoided. “We must be willing to identify loopholes and weaknesses in current processes to find effective solutions,” he said.
- Ensuring discussions lead to concrete action: Whether it concerns the GMT, Carbon Border Adjustment Mechanisms, or Embedded Tax models, a central question remains over how Vietnam’s tax authority should proceed.
During the conference, tax officials and experts presented a range of topics, including the roadmap for adjusting tax incentive policies and carbon taxes; practical experiences on the GMT; reforming international tax dispute resolution; integrated tax ecosystems; data-driven tax audits; transfer pricing risk management; and oversight of digital platforms.
Discussions also focused heavily on tax data governance, the application of AI in monitoring related-party transactions and cross-border financial flows, transparency for multinational corporations’ tax reporting, as well as challenges in attracting and developing high-quality IT talent.
The director general reiterated that digital transformation should not be viewed merely as a technological upgrade, but as a comprehensive restructuring of tax governance itself. He pointed out that every modern tax governance trend emerging globally must ultimately be translated into solutions suited to Vietnam’s practical conditions, ensuring not only effective state management, but also greater convenience for taxpayers and a more transparent business environment.
Thanh called on tax authorities to continue studying international tax governance trends, while proposing innovative solutions and expanding the use of big data, AI, and digital technologies throughout the entire tax process.
