On October 10, 2025, Vietnam’s Ministry of Finance took a bold step toward streamlining tax administration, proposing the abolition of a long-standing bureaucratic hurdle: the separate registration procedure for dependents in personal income tax filings. For years, individuals earning income from salaries and wages have been required to register their dependents—children, parents, spouses, or others—through a process that, frankly, many found unnecessarily complicated and repetitive. Now, if the Ministry’s proposal is adopted, this process could soon become a relic of the past, replaced by a more efficient, tech-driven system that promises to ease the burden for millions of taxpayers and the agencies that serve them.
According to daidoanket.vn, the current system obliges taxpayers to register dependents either through their employer (the income-paying agency) or directly at tax offices. When tax season rolls around, individuals must submit a finalization dossier that includes information about those same dependents—information they’ve already provided. Tax authorities have acknowledged that this redundant paperwork not only wastes time but also creates extra work for taxpayers and government staff alike. It’s a familiar story for anyone who’s ever filled out the same form twice and wondered, “Didn’t I already do this?”
The Ministry of Finance’s new proposal, outlined in the draft amendment to Decree 126/2020/ND-CP, aims to merge the dependent registration process into the initial tax registration for dependents—specifically, the procedure governed by Circular 86/2024/TT-BTC. In practical terms, this means that when individuals first register for personal income tax, they’ll handle dependent information at the same time, eliminating the need for a separate, duplicative administrative process. The change is detailed in the proposed amendments to Appendix I of Decree 126/2020/ND-CP, which will remove the previous dossier requirements for dependent registration prior to tax deduction.
Instead of the old forms, taxpayers will use a new document—form 07/XN-NPT-TNCN, an appendix for declaring direct dependents. This form will be submitted alongside the initial tax registration, streamlining the entire process. As explained by the Ministry, the reform is designed to avoid duplicate dossier components and to make full use of Vietnam’s rapidly improving electronic data infrastructure. Tax authorities will now be able to automatically query information about dependents from the National Population Database, using the taxpayer’s personal identification number as the tax code. For most people, this means no more scrambling to find and submit proof documents for their children, parents, or spouses—data that’s already on file with the government.
“For common cases such as dependents who are children, parents, or spouses, the Tax Authority will automatically query data from the National Population Database, so taxpayers will not need to submit proof documents,” reported daidoanket.vn. This automatic verification, enabled by the integration of national databases and tax management systems, is expected to significantly reduce manual work for both taxpayers and tax officers. Taxpayers will only need to declare a unique set of identifying information—name, date of birth, and personal ID—once. After that, the system will automatically update deduction dossiers whenever necessary. No more repeating yourself. No more paperwork déjà vu.
Of course, not every case is so straightforward. For dependents who fall outside the most common categories—such as individuals without family support, disabled persons, or others cared for under specific legal provisions—the process will still require a bit of old-fashioned human oversight. Since proof documents for these cases (like disability certificates or local authority confirmations) aren’t yet integrated into electronic databases, tax authorities will manually verify the information before issuing tax codes and granting the associated deductions. But even here, the Ministry’s intention is clear: as more data becomes digitized and interconnected, manual verification should become the exception rather than the rule.
The benefits of this reform aren’t just about convenience, though that’s certainly a big part of it. By reducing the paperwork burden, the Ministry is also aiming to improve the accuracy and transparency of the personal income tax system. When all relevant data is synchronized between the National Population Database and tax management systems, the risk of errors—whether from duplicate entries or missing information—drops dramatically. Issuing tax codes for dependents will become a largely automated, faster, and more transparent process. For taxpayers, this translates into fewer headaches and less chance of being tripped up by administrative snafus.
Tax officials, too, stand to benefit. As daidoanket.vn notes, “This reform will significantly reduce the number of dossiers to be processed by tax agencies and improve accuracy and transparency.” With fewer forms to review and less manual cross-checking required, staff can focus on more substantive work—like helping taxpayers with complex questions or rooting out genuine cases of fraud. The reform is also expected to help ensure that deductions are granted only to those who truly qualify, thanks to improved data-matching and verification processes.
For the average Vietnamese taxpayer, the change is likely to be felt most keenly during the annual tax season. Instead of juggling multiple forms and making repeat visits to tax offices, individuals will find the process more streamlined and user-friendly. When registering a dependent, they’ll simply provide the necessary identification information once, confident that the system will handle the rest. For those with more complicated family situations—such as caring for a disabled relative—the process may still involve some paperwork, but the direction of travel is clear: toward greater automation and less bureaucracy.
Of course, no reform of this scale is without its challenges. Integrating disparate databases and ensuring data privacy are no small feats, and there will inevitably be teething problems as the new system rolls out. Some observers have raised concerns about the potential for technical glitches or the security of sensitive personal information. The Ministry of Finance, for its part, has emphasized the importance of data synchronization and secure handling of personal data, aiming to reassure both taxpayers and privacy advocates that the system will be robust and trustworthy.
This move is part of a broader trend in Vietnam’s public administration: leveraging technology to cut red tape, improve efficiency, and make life a little easier for ordinary citizens. It’s a story playing out in government offices across the country, as digital transformation becomes a central plank of policy. The hope is that, by reducing the time and effort required to comply with tax regulations, the government can encourage greater compliance and foster a more positive relationship between citizens and the state.
As the proposal moves through the legislative process, all eyes will be on the Ministry of Finance to see how quickly and smoothly the new system can be implemented. For now, though, taxpayers can look forward to a future where registering dependents for tax deductions is less of a headache—and, perhaps, a step closer to a truly modern, digital-first public service.
