Vietnam finance ministry proposes allocating 10% of tax surplus as bonus for tax officials

This could amount to around VND8 trillion (US$303 million) per year.

The proposal was discussed on Monday afternoon, when the National Assembly Standing Committee reviewed the draft amendments to the Law on Tax Administration.

Under the proposal, tax agencies would receive bonuses when budget revenue exceeds the targets set by the National Assembly.

The bonuses are intended to supplement income for civil servants and staff working in the tax sector.

The government would regulate how the amount is allocated and used to ensure efficiency and intended purposes.

Phan Van Mai, chairman of the National Assembly's Economic and Financial Committee, expressed support for providing additional income to tax officials, suggesting a scheme similar to what is applied to inspectors, legal drafters, or officials in provinces with special mechanisms.

Given the increasing workload and restructuring pressures on the tax sector, a more stable income policy is needed to retain and support personnel, he noted.

However, some lawmakers cautioned that including the reward mechanism in the law currently lacks political backing, as both the Party and the National Assembly have issued resolutions calling for the elimination of off-budget payments originating from the state budget.

As a result, the government must consult with the Politburo before implementing such a reward policy.

If approved, it must be clearly defined and balanced with similar policies for other groups.

The government and the Ministry of Finance were also urged to ensure that the use of these funds is managed efficiently, legally, and with no waste or misuse of public resources.

Some lawmakers suggested using a portion of recovered funds from tax evasion or old tax debts to fund the bonuses.

In response, Deputy Minister of Finance Tuan explained that prior to the removal of special financial mechanisms, tax and customs agencies were allowed to allocate a portion of collected revenue for institutional operations, infrastructure modernization, and digital transformation. 

At the time, this retention rate was 1.8 percent for tax and 2.1 percent for customs.

Under the new proposal, this is no longer a special mechanism but a reward based solely on surplus tax revenue.

The reward will not exceed one month’s salary per employee.

Tuan also noted that in some localities such as Hanoi and Ho Chi Minh City, tax officials already receive additional income as per local policies, benefiting over 4,000 employees.

However, central tax officials working in the same areas are not eligible, creating concerns about fairness and morale.