{
  "id": 15545488,
  "title": "Data driven management for modern tax administration",
  "url": "https://urgent.news/2026/10/19/data-driven-management-for-modern-tax-administration",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-19T02:28:12.000Z",
  "source": {
    "name": "Vietnam Investment Review",
    "slug": "vietnam-investment-review",
    "url": "https://vir.com.vn/data-driven-management-for-modern-tax-administration-163161.html"
  },
  "original_language": "en",
  "account": "In the evolving landscape of tax administration in Vietnam, a shift from traditional compliance to proactive data-driven governance is becoming increasingly important. This transformation, especially in the wake of the rise of e-commerce, digital platforms, and cross-border transactions, necessitates enhanced tax administration mechanisms. The Decree 252 outlines several key aspects of this new approach.\n\nFirstly, the decree strengthens the legal framework for tax administration by promoting data utilization and connectivity. It encourages the increased use of electronic transactions, particularly for businesses operating through digital platforms. E-commerce platform operators, both domestic and international, are now mandated to withhold, declare, and pay taxes on behalf of business households and individuals, including foreign suppliers, engaged in such activities. They are also responsible for managing user credentials and retaining relevant transaction data and supporting documents.\n\nTo ensure effective tax administration, the decree adopts a compliance- and risk-based approach. Taxpayers are categorized based on their compliance history and tax risk. This approach enables targeted supervision and potential incentives for good compliance, such as recognition and preferential treatment. Conversely, high-risk taxpayers may face enhanced monitoring, inspections, and supervision. An example provided is the temporary suspension of exit rights for individuals who owe significant tax debts and have been delinquent for more than 120 days.\n\nThe decree also emphasizes the integration of tax administration with national databases and the application of artificial intelligence to support compliance, administration, and taxpayer classification. While technological reliance brings about data security concerns, Decree 252 safeguards these concerns by restricting information disclosure to only what is necessary for tax administration, adhering to personal data protection and cybersecurity regulations. Taxpayers will not be penalised for delays due to system failures.\n\nLooking ahead, data and risk-based tax administration will enable a more comprehensive cross-checking of enterprise information from various sources. Businesses are thus encouraged to focus on maintaining data quality and ensuring accuracy, completeness, and consistency in their tax, accounting, and e-invoice information. Taxpayers with good compliance records and low risk may receive commendations, rewards, and preferential treatment in tax administration, such as streamlined procedures and faster processing times.\n\nTo qualify for these benefits, taxpayers must maintain a good compliance rating and low-risk rating for at least two consecutive years, while satisfying requirements related to tax data connectivity and sharing, electronic data management and storage, internal controls, tax risk management, and adherence to reporting regulations. This incentive mechanism encourages businesses to comply with tax laws, as it offers tangible benefits like reduced administrative procedures and priority in processing tax applications.\n\nFinally, Decree 252 fosters international cooperation in tax administration, particularly in transfer pricing control, base erosion prevention, and cross-border transactions. Vietnamese tax authorities can request foreign tax authorities for assistance in collecting tax debts from Vietnamese taxpayers who are no longer in Vietnam, and they can also provide tax collection aid to foreign authorities upon request, in accordance with international treaties. Overall, the focus on data-driven management in tax administration aims to enhance efficiency, accuracy, and compliance while encouraging businesses to proactively manage their data.",
  "summary": "Tax administration in Vietnam is being reformed from paper based administration towards data driven management and compliance and risk based approaches as introduced under the Law on Tax Administration and further implemented and guided by Decree No 252 2026 ND CP effective from July",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}