May a person who has not fulfilled his/her tax obligations in Vietnam exit to reside overseas?

What are the cases of tax enforcement in Vietnam?

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

- The taxpayer’s tax has been overdue for more than 90 days.

- The taxpayer fails to pay tax by the extended deadline.

- The taxpayer attempts to liquidate assets or abscond.

- The taxpayer fails to implement the tax decision by the deadline written therein, unless it is delayed.

- A tax decision will not be enforced for up to 12 months if the tax authority charges off the tax debt; exempts late payment interest in accordance with this Law; allows payment of outstanding tax in instalments.

Payment of tax by instalments shall be considered by the supervisory tax authority of the taxpayer on the basis of the taxpayer’s request and guarantee of a credit institution. The Minister of Finance shall specify the number of instalments and procedures for tax payment by instalments.

- Do not enforce tax payment if the taxpayer owes customs fees and transit fees.

- The legal representative of the enterprise against which the tax decision is enforced shall fulfill its tax liability before exiting the country and may be suspended from exit in accordance with immigration laws.

May a person who has not fulfilled his/her tax obligations in Vietnam exit to reside overseas? (Image from the Internet)

May a person who has not fulfilled his/her tax obligations in Vietnam exit to reside overseas?

Under Clause 1 Article 21 of Decree 126/2020/ND-CP:

Fulfillment of tax obligations upon exit from Vietnam

1. Exit from Vietnam will be suspended in the following cases:

a) The individual, the individual that is the legal representative of an enterprise has not fulfilled tax obligations under a tax enforcement decision.

b) A Vietnamese national has not fulfilled his/her tax obligations before emigration.

c) A Vietnamese national residing overseas has not fulfilled his/her tax obligations before exit.

d) A foreigner has not fulfilled his/her tax obligations before exit.

...

Thus, a person who has not fulfilled his/her tax obligations in Vietnam shall be subject to exit suspension for residing overseas.

What is the time limit for exit suspension cancellation for a suspended person who has fulfilled his/her tax obligations in Vietnam?

Under Clause 3 Article 21 of Decree 126/2020/ND-CP:

Fulfillment of tax obligations upon exit from Vietnam

...

3. Procedures for imposing, extending and cancelling exit suspension

a) After a taxpayers’ tax obligations are determined, the tax authority shall compile a list of individuals suspended from exit and send a suspension notice (Form No. 01/XC in Appendix III hereof) to the immigration authority and the taxpayers.

b) Within the day on which the suspension notice is received, the immigration authority shall suspend these persons from exit and post the suspension notice on its website.

c) If a suspended person has fulfilled his/her tax obligations, within 24 working hours, the tax authority shall issue a suspension cancellation notice (Form No. 02/XC in Appendix III) and send it to the immigration authority.

For suspended persons who have not fulfilled their tax obligations in 30 days before expiration of the suspension period, the tax authority shall send a notice of extended suspension (Form No. 02/XC) to the immigration authority and these persons.

d) The suspension notice, extended suspension notice and suspension cancellation notice shall be sent by post or electronically if possible and posted on the website of the tax authority. It will be considered that a notice has been sent if it has been posted on the tax authority’s website even if it is returned after sent by post.

Thus, if a suspended person has fulfilled his/her tax obligations, within 24 working hours, the tax authority shall issue a suspension cancellation notice and send it to the immigration authority.