Tax Compliance Risk Management in Malaysia: Legal Experience and Lessons for Vietnam

This study analyzes Malaysia's legal experience in managing tax compliance risk, a model highly regarded for its transparency and effectiveness. Malaysia's legal framework, operated by the Inland Revenue Board of Malaysia (IRBM), employs a risk classification and cooperation system for taxpayers, combined with big data analytics to detect errors in tax declarations and assess the probability of violations. Simultaneously, coordination mechanisms play a crucial role in promoting voluntary compliance, enhancing accountability, and fostering a collaborative tax governance environment between the tax authority and businesses. Based on Malaysia's experience, the study proposes several policy implications for Vietnam to contribute to the modernization of the Vietnamese tax system towards transparency, risk-based management, and sustainable tax compliance.