Does failing to pay tax affect customs procedures in Vietnam?

What are case of tax enforcement in Vietnam?

According to Article 124 of the 2019 Law on Tax Administration, the cases subject to tax enforcement include:

- A taxpayer with overdue tax for more than 90 days from the deadline for payment.

- A taxpayer with overdue tax after the extension period for tax payment.

- A taxpayer with overdue tax who disperses assets or absconds.

- A taxpayer who does not comply with the administrative violation penalty decision on tax management within the time limit stated on the penalty decision, unless there is a suspension or temporary suspension of the enforcement of the penalty decision.

- Enforcement measures have not been taken in cases where the taxpayer is allowed by the tax administration authority to defer overdue tax within the deferment period; no late payment interest is calculated as prescribed by the 2019 Law on Tax Administration; and deferred payment of tax debts within a period of no more than 12 months from the start of the tax enforcement period.

The installment payment of overdue tax shall be considered by the head of the tax authority overseeing the taxpayer based on the taxpayer's request, and must be guaranteed by a credit institution. The Minister of Finance shall stipulate the number of installment payments and the dossier, procedures for installment payment of overdue tax.

- Enforcement measures shall not be taken for taxpayers with overdue customs fees and transit fees.

- An individual who is the legal representative of a taxpayer must fulfill the taxpayer's tax obligations before departure and may be temporarily suspended from leaving the country as per the legal provisions on exit and entry.

Does failing to pay tax affect customs procedures in Vietnam? (Image from the Internet)

Does failing to pay tax affect customs procedures in Vietnam?

According to Article 124 of the 2019 Law on Tax Administration, cases of overdue tax being enforced through administrative decisions on tax management include:

- A taxpayer with overdue tax for more than 90 days from the deadline for payment.

- A taxpayer with overdue tax after the extension period for tax payment.

- A taxpayer with overdue tax who disperses assets or absconds.

And according to Clause 1, Article 125 of the 2019 Law on Tax Administration, it is stipulated as follows:

Enforcement measures for administrative decisions on tax management

1. Enforcement measures for administrative decisions on tax management include:

a) Deduction of money from the bank account of the entity subject to enforcement at the State Treasury, commercial banks, or other credit institutions; freezing accounts;

b) Deduction of part of wages or income;

c) Stopping customs procedures for exported and imported goods;

d) Suspending the use of invoices;

đ) Seizure of assets, auction of seized assets according to legal regulations;

e) Collecting money and other assets of the entity subject to enforcement held by organizations, individuals;

g) Revoking business registration certificates, business licenses, cooperative registration certificates, investment certificates, licenses of establishment and operation, practice licenses.

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Thus, in cases of unpaid tax, customs procedures for exported and imported goods will be stopped.

Which entities shall be suspended from exitting Vietnam due to tax debt?

Based on Clause 7, Article 124 of the 2019 Law on Tax Administration, it is stipulated as follows:

Cases subject to tax enforcement

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7. An individual who is the legal representative of a taxpayer must fulfill the tax obligations of the enterprise being enforced for administrative decisions on tax management before exiting the country and may be temporarily suspended from leaving the country under the legal provisions on exit and entry.

Additionally, Clause 5, Article 36 of the 2019 Law on Exit and Entry of Vietnamese Citizens stipulates temporary suspension of exit due to tax debt as follows:

Cases subject to temporary suspension of exit

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5. Taxpayer, legal representative of an enterprise being enforced for administrative decisions on tax management, Vietnamese citizens exiting to settle abroad, and Vietnamese citizens settling abroad before exiting have not fulfilled tax obligations as prescribed by the law on tax management.

Thus, the entities who may be temporarily suspended from exit due to tax debt include the taxpayer, the legal representative of the enterprise, Vietnamese citizens exiting to settle abroad, and Vietnamese citizens settling abroad before exiting.