The review and handling of outstanding tax codes is being implemented by Vietnam on a large scale to clarify the operation status of enterprises, handle incomplete documents and improve the quality of data for tax administration. However, this process also poses many practical problems when tax obligations or registration information from many years ago can continue to affect people and businesses at the present time.
In the article "Old records, new troubles: Vietnam's tax clean-up catches taxpayers off guard" published on The Straits Times on October 18, 2026, The Straits Times talked with Managing Partner Nguyen Van Phuc, representative of HM&P Law Firm ("HM&P"), about the goals of the Vietnam Tax Department's "Cleaning Tax Code - Removing Business Bottlenecks" campaign in 2026, the impacts on business households and small businesses, as well as the requirement to ensure the accuracy and transparency of data in the process of tax administration reform in Vietnam.
Managing Partner Nguyen Van Phuc
Data cleansing isn't just for handling tax backlogs
According to The Straits Times, more than 600,000 businesses have ceased operations but have not completed the procedures for terminating their tax identification numbers or can no longer be contacted at the registered address. The campaign will be implemented nationwide from May 2026 to handle the backlog of tax codes, accelerate the termination of operations of businesses that no longer exist in reality and gradually digitize the management system.
Lawyer Phuc said that the main goal of the campaign is not simply to recover the missing taxes. More importantly, this is the process of adjusting data and handling protracted legal situations that make it difficult for both businesses and management agencies. The clear classification of subjects that are still active, have stopped operating but have not completed the procedures or no longer exist at the registered address also helps reduce the situation that businesses have left the market in fact but continue to exist in terms of legal and tax obligations. Lawyer Phuc shared:
"This requirement becomes even more necessary as tax administration is gradually shifting from record-based management to data mining, risk classification and compliance. Accurate data not only serves tax authorities but also facilitates more effective coordination with business registration authorities and relevant authorities."
Small businesses may be more impacted by historical data
The article also reflects many cases where taxpayers only discover the obligations that still exist from previous business activities when the measure of exit suspension is applied. Some other cases are also related to personal information that is suspected of being used to register a business without the knowledge of the person in name. These situations show that data cleaning is not only a technical issue but also directly related to the taxpayer's ability to check, explain and adjust information.
According to Lawyer Phuc, in the long term, the handling of outstanding tax codes can help businesses clarify their legal status, making it more convenient to terminate or resume operations. However, in the short term, business households and small businesses may be more affected if historical data is inaccurate or tax obligations are difficult to determine, because they often lack accounting and legal resources to handle. Therefore, the worry does not lie in the campaign itself, but in the possibility that business people have to spend a lot of time explaining and adjusting information and find it difficult to fully forecast their costs and legal responsibilities.
Information transparency to reduce risks for taxpayers
For the case of temporary postponement of exit due to tax obligations, Lawyer Phuc noted that this is only a measure applied when fully meeting the statutory conditions, not all old taxes automatically lead to restriction of exit. Therefore, the management agency needs to ensure that the debt is accurately reconciled, fully notified and has a timely handling mechanism when detecting errors; at the same time, people and businesses should actively check the status of tax codes and outstanding obligations, especially for cases that used to be in the name of business households or acted as legal representatives of enterprises that have ceased operation.
Lawyer Phuc said that an important requirement in the process of perfecting tax administration is to build a unified electronic system, allowing taxpayers to easily check tax obligations and the risk of suspension of exit with timely updated information. The effectiveness of tax reform, according to him, lies not only in the ability to prevent budget revenue loss but also in the formation of a transparent, fair and easy-to-comply system, thereby helping people and businesses reduce compliance costs and legal risks.
Through our conversation with The Straits Times, HM&P continues to share its expert perspective on the notable changes in tax administration and the business environment in Vietnam. Participating in the exchange with the international media is also an opportunity for HM&P to contribute to clarifying issues of concern to businesses and taxpayers, and at the same time connecting domestic policy movements with the interests of the international business community and investors.
Read more:
Straitstimes: Old records, new troubles: Vietnam’s tax clean-up catches taxpayers off guard
Asianews: Old records, new troubles: Vietnam’s tax clean-up catches taxpayers off guard
