Payroll Health Check - The Smart Way to Prepare for Vietnam’s Intensifying Tax Inspections

This urgency is not just an observation. Statistics from the General Department of Taxation show that in the first 8 months of 2025 alone, over VND 35,000 billion (approx. 1.4B USD) was collected in back taxes, a 114% increase year-on-year. This trend is driven by the strong digitalization of tax management and the government’s efforts to expand the state budget.

Tax risk rarely stems from intentional violation; it more often arises from gaps in the internal control system and payroll governance processes. This is no longer a simple operational issue; it has become a strategic challenge that demands leadership’s attention.

Who Should Be Paying Attention?

Our Payroll Process Assessment and Payroll Compliance Review solutions are designed for companies that:

• Operate in high-compliance industries such as banking, insurance, pharmaceuticals, or manufacturing — where audit readiness is mission-critical
• Are preparing for IPO, M&A, or restructuring
• Have not been inspected for PIT/SHUI (Personal Income Tax / Social–Health–Unemployment Insurance) for years, or expect upcoming audits from local authorities or regional headquarters to the enterprise’s role in PIT finalization.
• Are running payroll in-house, have recently changed payroll service providers, or want to audit the performance of their current vendor
• Are experiencing large workforce changes or recent policy or process transitions
• Have new leadership (CEO, CFO, HRD, etc.) seeking to review payroll compliance and internal control systems, and to avoid common errors in payroll processing.

Why This Matters Now?

According to Vietnam’s General Department of Taxation, during the first eight months of 2025, authorities conducted over 32,800 tax inspections, reaching 48.8% of the annual plan, and handled more than VND 35,000 billion in financial settlements – a 114% increase year-on-year.

(Sources: VnExpress, Vietnam News, October 2025)

This trend is driven by several key factors:

1. Rapid policy evolution and the government’s push to expand revenue collection.
2. Digitalization of tax administration – with e-invoices, data integration, and AI-assisted risk profiling allowing deeper scrutiny and better classification of businesses by tax risk.
3. A renewed focus on compliance transparency across sectors, especially those with complex payroll systems or cross-border operations.

The takeaway is clear: tax risk rarely arises from non-compliance alone – it often comes from lack of preparation.

When internal controls, documentation, or payroll governance are weak, even compliant companies can face costly findings.

Download our Payroll health check’ leaflet to view details of the product.

Self-Check: How Audit-Ready Is Your Business?

Before your next inspection, take a moment to reflect:

• Have we identified and evaluated all internal controls related to payroll and tax?
• Do we have a formal governance mechanism to manage payroll risks?
• Are we leveraging data and technology effectively to detect irregularities?
• Do we have the right internal expertise or external support such as PIT advisory to ensure compliance?

A structured “Payroll Health Check” can provide clarity before a real audit does.

Good Practices from Leading Organizations

Forward-thinking businesses across Vietnam and the region are adopting proactive compliance practices, such as:

• Regular internal control reviews on tax and payroll processes.
• Periodic payroll or tax health checks to identify risk gaps early and optimize lawful tax benefits.
• Embedding tax risk management into operational workflows – aligning HR, Finance, and Compliance teams for unified decision-making.

These practices transform compliance from a defensive act into a strategic advantage.

Our Recommended Solutions

1. Payroll Process Assessment: to evaluate the end-to-end payroll process for efficiency, control, and role clarity, based on the key principles of payroll compliance in Vietnam.
2. Payroll Compliance Review: to evaluate accuracy and compliance of payroll calculations and statutory obligations.

Download solutions’ leaflet to read more about key procedures, deliverables & other product-related information

Final Thought: Prepare, Don’t Repair

With over 32,000 inspections already carried out this year, tax audits will eventually reach every business. The difference lies in who prepares and who waits.

By conducting regular payroll health checks and compliance reviews, organizations not only reduce audit risks but also strengthen governance, optimize costs, and build lasting trust with regulators and stakeholders, all based on a comprehensive HR compliance checklist.

Contact us:

• Ms. Đoàn Thị Kiều Vân – Associate Director of Payroll Services, Talentnet

Email: vandtk@talentnetgroup.com

• Ms. Nguyễn Hồng Nhung – Business Development Associate Manager of Payroll service, Talentnet

Email: nhungnh2@talentnetgroup.com