Vietnam Introduces Tax Department under Decision 381

March 21, 2025 Posted by Vietnam Briefing Written by Vu Nguyen Hanh Reading Time: 4 minutes

Issued on February 26, 2025, Decision No. 381/QD-BTC (“Decision 381″) officially terminated Vietnam’s General Department of Taxation and introduced a new, optimized three-level system under the Tax Department. This article examines the functions, responsibilities, and the new organizational structure of Vietnam’s tax system, as well as key takeaways for businesses during the transitional period.

On February 26, 2025, the Minister of Finance signed and issued Decision No. 381/QD-BTC (“Decision 381″), which outlines the functions, tasks, powers, and organizational structure of the Tax Department.

This reform officially dissolves the General Department of Taxation and introduces a streamlined three-tier tax administration system aimed at enhancing efficiency and reducing administrative burdens for businesses and taxpayers. The new framework, which came into effect on March 1, 2025, optimizes local tax forces’ efficiency and reduces administrative burdens for citizens and businesses.

Also read: Vietnam’s Government Restructuring: Updates on Conclusion 127

Functions and tasks

According to Decision 381, the Tax Department is a unit of the Ministry of Finance, tasked with advising and assisting the Minister of Finance in managing state taxes. This includes organizing the implementation of state budget management as it pertains to taxes, fees, charges, and state budget revenues in accordance with tax laws and related regulations.

Organizational structure of Vietnam’s Tax Department

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The Tax Department possesses its own legal status, a seal featuring the national emblem, and a State Treasury Account. It is headquartered in Hanoi.

The department is structured from the central to local levels following a three-tier model. Specifically, the Tax Department consists of 12 central units, 20 regional tax offices, and 350 district-level tax teams.

Central tax administration

Units under Tax Department’s Central Level
Unit	Notes
Office	Has five teams; Possess its own legal status, and seal; and Authorized to open accounts at the State Treasury according to legal regulations.
Policy and International Taxation Division
Legal Affairs Division
Tax Operations Division
Budget Estimation, Accounting, and Tax Statistics Division
Compliance Management and Taxpayer Support Division
Digital Transformation and Automation Technology Division	Has five teams; Possess its own legal status, and seal; and Authorized to open accounts at the State Treasury according to legal regulations.
Inspection and Audit Division	Has five teams
Personnel Division
Finance and Administration Division
Large Business Tax Sub-department	Has five sub-units; Possess its own legal status and seal; Assigned tax management codes; and Authorized to open accounts at the State Treasury according to legal regulations.
E-commerce Tax Sub-department	Has five sub-units; Possess its own legal status and seal; Assigned tax management codes; Authorized to open accounts at the State Treasury according to legal regulations; and Solely responsible for managing e-commerce activities to ensure effective tax collection from foreign companies, Vietnamese companies, and individuals.
Source: Article 3, Decision 381

Regional tax offices

Local tax branches are organized into 20 regions. Each regional tax office has its own legal status and seal, is granted a tax management agency code, and is allowed to open accounts at the State Treasury in accordance with the provisions of law.

The two largest regional tax offices of Region I (Hanoi and Hoa Binh) and Region II (Ho Chi Minh City) are authorized to operate up to 19 and 16 internal departments, respectively. Meanwhile, other regional tax offices will be limited to an average of 13 departments.

Regional Tax Offices under Decree 381
Regional Tax Office	Management Area	Headquarter
Region I	Hanoi, Hoa Binh	Hanoi
Region II	Ho Chi Minh City	Ho Chi Minh City
Region III	Hai Phong, Quang Ninh	Hai Phong
Region IV	Hung Yen, Ha Nam, Nam Dinh, Ninh Binh	Hung Yen
Region V	Bac Ninh, Hai Duong, Thai Binh	Hai Duong
Region VI	Bac Giang, Lang Son, Bac Kan, Cao Bang	Bac Giang
Region VII	Thai Nguyen, Tuyen Quang, Ha Giang	Thai Nguyen
Region VIII	Vinh Phuc, Phu Tho, Yen Bai, Lao Cai	Phu Tho
Region IX	Son La, Dien Bien, Lai Chau	Son La
Region X	Thanh Hoa, Nghe An	Nghe An
Region XI	Ha Tinh, Quang Binh, Quang Tri	Ha Tinh
Region XII	Hue, Da Nang, Quang Nam, Quang Ngai	Da Nang
Region XIII	Binh Dinh, Phu Yen, Khanh Hoa, Lam Dong	Khanh Hoa
Region XIV	Gia Lai, Kon Tum, Dak Lak, Dak Nong	Dak Lak
Region XV	Ninh Thuan, Binh Thuan, Dong Nai, Ba Ria – Vung Tau	Ba Ria – Vung Tau
Region XVI	Binh Duong, Binh Phuoc, Tay Ninh	Binh Duong
Region XVII	Long An, Tien Giang, Vinh Long	Long An
Region XVIII	Tra Vinh, Ben Tre, Soc Trang	Ben Tre
Region XIX	An Giang, Dong Thap, Can Tho, Hau Giang	Can Tho
Region XX	Kien Giang, Ca Mau, Bac Lieu	Kien Giang
Source: Annex, Decision 381

District-level tax teams

According to Decree 381, the district level will consist of 350 teams across districts, towns, and cities, operating under the direct supervision of regional tax offices. These teams will maintain their independent legal status, official seals, tax codes, and State Treasury accounts.

Also read: Vietnam Proposes Government Restructuring to Streamline Bureaucracy

Transitional provisions

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The Tax Department assumes the duties, powers, and responsibilities previously assigned to the General Department of Taxation, as specified in legal documents and regulations issued by the Minister of Finance until any changes are made by the competent authority to these documents.

The Director of the Tax Department is tasked with organizing units within the Tax Department to function under the new model within a maximum period of three months from the effective date of this Decision.

Takeaways for businesses

As the restructuring occurs, Dezan Shira and Associates’ experts urge companies to pay attention to the following issues:

Monitoring closures for maintenance: We anticipate that the online tax system may occasionally be fully or partially closed for updates and maintenance for several days. The latest closure occurred from March 12 to 17, 2025. Therefore, businesses must carefully monitor updates from the tax authorities to avoid any difficulties with tax declaration and payment.
Thorough reviews for e-commerce tax compliance: With the establishment of the E-commerce Tax Sub-department, it is recommended that individuals and businesses engaged in e-commerce in Vietnam review their tax compliance status to ensure adherence to Vietnamese tax regulations.

(With inputs from Doan Thi Yen Luy)

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