Circular 31/2026/TT-BTC: Regulations on Decentralization of Certain Tasks and Powers in State Management of the Ministry of Finance

Key Information

Reference Number: 31/2026/TT-BTC

Issuance Date: March 27, 2026

Effective Date: March 27, 2026

Status: In effect

Issuing Authority: Ministry of Finance

Introduction

Circular 31/2026/TT-BTC is an important legal document issued by the Ministry of Finance regulating the decentralization of certain tasks and powers in the field of state management. The document takes effect immediately from its issuance date, demonstrating the urgency of administrative reform and reorganization of the public financial management system.

Purpose and Significance

Management decentralization aims to:

• Enhance state management efficiency: Clear assignment of tasks and powers between agencies under the Ministry of Finance and local authorities
• Streamline administrative procedures: Reduce processing time for business and citizen applications
• Strengthen accountability: Each level and agency has clear responsibilities within their assigned scope
• Facilitate convenience: Businesses can access closer and faster competent authorities

Scope of Regulation

This Circular regulates decentralization in state management areas under the Ministry of Finance's authority, including:

• Tax administration: Decentralization of authority to resolve tax issues between the General Department of Taxation and local Tax Departments
• Customs management: Task assignment between the General Department of Customs and local Customs Branches
• Accounting and auditing management: Decentralization in managing and supervising accounting and auditing activities
• State budget management: Decentralization of authority in managing budget revenue and expenditure
• Other areas: Including public asset management, national reserves, and other financial sectors

Implications for Businesses

For Small and Medium Enterprises (SMEs)

Benefits:

• Faster access to competent local authorities
• Reduced travel costs and waiting time when processing procedures
• Improved business environment through more transparent administrative processes

Important Notes:

• Need to clearly identify the new competent authorities after decentralization
• Update contact information and new processes from local tax and customs authorities
• Monitor detailed guidelines to be issued later

For Large Enterprises and Foreign-Invested Enterprises

• May need to adjust internal processes to align with the new structure
• For complex transactions, need to determine which agency has jurisdiction
• Strengthen contact with local financial authorities to understand changes

Steps Businesses Should Take

1. Monitor guidance documents: Wait for detailed guidance documents from the Ministry of Finance and its affiliated agencies
2. Update contact information: Contact local Tax Departments and Customs Branches to learn about changes in jurisdiction
3. Review internal processes: Adjust procedures for handling tax, customs, and accounting matters according to new authorities
4. Train personnel: Update knowledge for accounting and tax departments on changes in management decentralization
5. Seek professional advice: If necessary, seek consultation from accounting and tax service companies to ensure proper compliance

Detailed Analysis

Impact on Tax Compliance

The decentralization of tax administration may result in:

• Local processing: More tax matters handled at provincial/district level
• Faster refunds: Quicker VAT refund processing by local authorities
• Direct support: Better access to tax officials for guidance
• Simplified appeals: Tax dispute resolution closer to businesses

Impact on Customs Procedures

For businesses engaged in import-export:

• Port-level authority: More decisions made at customs branches
• Classification issues: Local handling of tariff classification disputes
• Risk management: Improved risk profiling at local level
• Trade facilitation: Faster clearance for compliant businesses

Impact on Accounting and Financial Reporting

• Local supervision: Provincial authorities may have more oversight
• Enterprise registration: Changes in where certain registrations are processed
• Compliance monitoring: Increased local monitoring capacity
• Support services: Better access to guidance from local financial departments

Transition Considerations

Immediate Actions (Within 1 Month)

• Identify which matters are now handled locally vs. centrally
• Update contact lists with correct departments
• Review pending applications to determine if authority has changed

Short-term Actions (1-3 Months)

• Attend training sessions organized by tax/customs authorities
• Update internal procedures manuals
• Communicate changes to relevant staff members

Long-term Actions (3-6 Months)

• Evaluate efficiency improvements from decentralization
• Build relationships with local authorities
• Optimize compliance strategies based on new structure

Potential Challenges

For Businesses:

• Initial confusion about which authority handles specific matters
• Possible inconsistency in interpretation between local offices
• Need to establish new relationships with local officials

Mitigation Strategies:

• Maintain written records of all communications with authorities
• Request written confirmations when unclear
• Engage professional advisors familiar with local practices

Conclusion

Circular 31/2026/TT-BTC represents a significant step in administrative reform and modernization of state management in the financial sector. Although detailed content has not been fully disclosed, businesses should proactively monitor and prepare for upcoming changes. Proper decentralization will create more favorable conditions for business operations, reduce administrative burden, and improve compliance efficiency.

Businesses should maintain regular contact with local tax and customs authorities and monitor official information channels of the Ministry of Finance to stay updated on specific guidelines as they are released. The success of this decentralization will depend on clear implementation guidelines and effective coordination between central and local authorities.