Tax policies along with business support policies implemented by the Government and the Tax sector have brought about positive results. Photo: H.Anh

Creating opportunities and supporting economic growth

The period 2021–2025 has posed immense challenges for businesses due to the COVID-19 pandemic and global geopolitical uncertainties. To maintain economic stability, the Government, the Tax Department, and related agencies implemented tax policies and support measures, yielding positive results.

According to Mai Son, Deputy Director General of Taxation under the Ministry of Finance, the national budget revenue target for 2012–2025 is VND8.3 quadrillion. By December 2024, total revenue is estimated to reach VND7.2 quadrillion.

Factoring in projections for 2025, the revenue for 2021–2025 is expected to reach VND9 quadrillion, achieving financial stability targets set by the national fiscal plan. The tax and fee collection rate is projected at 14% of GDP, with domestic revenue accounting for 86% of total revenue by the end of 2025.

Mr. Son credited these results to ongoing improvements in tax policies and the efficient collection process. Importantly, tax policies have supported economic growth through strategic incentives and relief programs.

Over the past four years, tax exemption, reduction, and deferral measures have eased financial burdens for businesses and households, enabling them to sustain operations and promote recovery. These measures have stimulated economic growth while supporting state revenue collection, contributing to the dual goals of fiscal assistance and economic resilience​

From 2021–2024, nearly 3.7 million taxpayers benefited from tax and fee reductions across eight taxes and 36 fees. The Tax Department has complemented these measures with administrative reforms, digitalization, and modernized payment systems, making it easier for taxpayers to fulfill obligations​

Till now, 100% of businesses now use electronic tax filing services, 99% of businesses have registered for electronic payments, 99% of active businesses participate in electronic tax refund programs, 100% of companies have adopted electronic invoicing​

Continuous reforms to promote growth

Mac Quoc Anh, Chairman of the Hanoi Small and Medium Enterprises Association, praised the Tax Department for supporting businesses during and after the pandemic. He emphasized the importance of digital transformation, tax policy enhancements, and targeted tax reductions to promote sustainable growth.

Mr. Quoc Anh suggested applying lower corporate income tax rates for startups and innovative enterprises, as well as tax exemptions and reductions for industries heavily impacted by the pandemic, such as tourism, logistics, and retail​

Nguyen Thi Cuc, Chairwoman of the Vietnam Tax Consultants Association, called for a transparent, consistent, and stable tax system to ensure fairness and compliance. She emphasized the need for further administrative reforms and improved digital services to enhance taxpayer experience​

"When visiting other countries, we see how well-supported businesses are. We hope Vietnam will offer similar support to ensure compliance while reducing tax evasion," Ms. Cuc added.

Highlighting the importance of a strong tax system for economic stability, Mai Son stressed that the General Department of Taxation is committed to deeper reforms to streamline processes, saving time and costs for taxpayers; enhance transparency and attract foreign investment; strengthen international integration and level the playing field for domestic businesses​

"2025 marks the final year of the 2021–2025 medium-term financial plan. To achieve our goals, the Tax Department will continue advising the Government and the National Assembly on flexible, proactive fiscal policies aligned with macroeconomic strategies," Mr. Son stated.

He emphasized that tax reforms would focus on supporting businesses and taxpayers, closely monitoring economic conditions, and proposing timely solutions to foster growth and ensure sustainable state budget revenue​.