HÀ NỘI — The Vietnam Tax Authority is developing a digital system to help businesses cut tax paperwork, automate declarations and gain insights into their operations, while using artificial intelligence (AI) to flag potential compliance risks before they lead to costly problems.

The information technology project, which is expected to be completed in 2028, will connect tax administration systems with businesses’ accounting software to enable tax declarations to be prepared more automatically and allow companies to focus more on management and business operations, Mai Xuân Thành, director general of the Việt Nam Tax Authority said.

Speaking at KPMG’s annual Tax & Legal Institute 2026 on October 27-28, Thành said the project aimed to turn the tax system into an advanced assistant for taxpayers.

The system could provide corporate managers with insights into input prices, selling prices, industry trends and market share and help businesses assess their market position and identify areas for improvement, he said.

In addition, the system is intended to function as a virtual adviser, supporting companies in reviewing their operations, addressing weaknesses and identifying opportunities for growth in Việt Nam and overseas.

“The tax authority genuinely wants to be a partner to taxpayers,” Thành said.

The tax authority is also seeking to strengthen data connectivity and simplify administrative procedures through so-called embedded taxation, in which tax accounting functions are integrated into companies’ existing accounting systems.

The approach is expected to automate data exchanges and flag irregularities, including potential problems involving invoices.

Integrating tax functions into business accounting platforms could help improve efficiency while reducing the need for manual processing, Thành said.

The tax authority also plans to expand its use of AI and interconnected data systems to simplify declarations and to minimise manual intervention and unnecessary requests for information from taxpayers.

Besides, the tax authority is seeking to shift the focus of tax inspections towards risk assessment and encouraging businesses to address potential compliance problems before formal inspections take place.

Businesses selected for inspection would be assessed through risk-based systems, with AI used to analyse financial statements and other relevant information to identify potential warning signs.

Businesses that meet their tax obligations, maintain effective internal controls and demonstrate low levels of risk would have a lower likelihood of being selected for inspection. The approach is intended to encourage voluntary compliance while directing inspection resources towards higher-risk cases, he said.

He urged companies to strengthen their accounting systems, improve internal controls and align their practices with relevant international standards.

The initiative is also in line with the implementation of Resolution No. 57-NQ/TW, which identifies science and technology, innovation and national digital transformation as key drivers of development. The use of AI, interconnected data systems and automated tax services is expected to help modernise tax administration, reduce compliance costs for businesses and improve the efficiency of public services.— BIZHUB/VNS