Shall the legal representative of the enterprise against which the tax decision is enforced be suspended from exit Vietnam?

Shall the legal representative of the enterprise against which the tax decision is enforced be suspended from exit Vietnam?

According to Clause 7, Article 124 of the Law on Tax Administration 2019, the cases subject to enforcement of administrative decisions on tax administration are stipulated as follows:

Cases of enforcement of administrative decisions on tax administration

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7. An individual who is the legal representative of a taxpayer must complete the tax liabilities of the enterprise against which the tax decision is enforced before exiting the country and may be temporarily banned from exit in accordance with the laws on exit and entry.

Additionally, Clause 1, Article 21 of Decree 126/2020/ND-CP stipulates the fulfillment of tax liabilities in case of exit as follows:

Fulfillment of tax liabilities in case of exit

1. Cases of temporary exit suspension include:

a) Individuals, individuals who are the legal representative of a taxpayer as a company subject to enforcement of an administrative decision on tax administration not completing tax liabilities.

b) Vietnamese individuals exiting to settle abroad who have not completed tax liabilities.

c) Vietnamese individuals residing abroad prior to exit who have not completed tax liabilities.

d) Foreigners prior to exiting from Vietnam who have not completed tax liabilities.

2. The authority to decide on temporary exit suspension, extension, and cancellation

a) Heads of the tax administration directly managing taxpayers have the authority to decide on temporary exit suspension based on the actual situation and tax administration in the area for cases specified in Clause 1 of this Article.

b) Persons authorized to decide on temporary exit suspension also have the authority to decide on extensions and cancellations of such exits.

c) An authorized person for temporary exit suspension must cancel the suspension no later than 24 working hours after the taxpayer completes their tax liabilities.

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From the above regulations, it can be seen that an individual who is the legal representative of the enterprise against which the tax decision is enforced, who has not fulfilled tax liabilities, is subject to temporary exit suspension.

In other words, a legal representative can be temporarily banned from exit when the company has not fulfilled its tax liabilities.

Shall the legal representative of the enterprise against which the tax decision is enforced be suspended from exit Vietnam? (Image from the Internet)

What are the procedures for temporary exit suspension when tax liabilities are not fulfilled in Vietnam?

According to Clause 3, Article 21 of Decree 126/2020/ND-CP concerning the procedures for temporary exit suspension in cases where a taxpayer has not fulfilled tax liabilities, it is specified as follows:

- Procedures for implementing temporary exit suspension, extension, and cancellation

+ After reviewing, comparing, and accurately determining the tax liabilities of the taxpayer, the tax administration directly managing the taxpayer develops a list of individuals, legal representatives of companies subject to temporary exit suspension, and prepares a document using Form No. 01/XC in Appendix III issued with Decree 126/2020/ND-CP, sends it to the immigration administration and informs the taxpayer to fulfill tax liabilities before exiting.

- On the day of receiving the temporary exit suspension document from the tax administration, the immigration administration is responsible for implementing the temporary exit suspension as prescribed and posting it on the immigration administration's electronic information page.

- If the taxpayer has fulfilled the tax liabilities, within 24 working hours, the tax administration issues a document to cancel the temporary exit suspension using Form No. 02/XC in Appendix III issued with Decree 126/2020/ND-CP, sending it to the immigration administration to implement the cancellation as prescribed.

30 days before the expiration of the temporary exit suspension if the taxpayer has not fulfilled the tax liabilities, the tax administration sends an extension document using Form No. 02/XC in Appendix III issued with Decree 126/2020/ND-CP to the immigration administration and informs the taxpayer.

- Documents for temporary exit suspension, extension, and cancellation are sent via postal service or electronically if conditions for electronic transactions are met and are posted on the tax administration's electronic information page. If the document sent to the taxpayer by post is returned and has been posted on the tax administration's electronic information page, it is considered delivered.

What are the cases subject to enforcement of administrative decisions on tax administration in Vietnam?

According to Article 15 of the Law on Tax Administration 2019, the cases subject to enforcement of administrative decisions on tax administration are regulated as follows:

- Taxpayers who owe taxes more than 90 days from the deadline for payment.

- Taxpayers who owe taxes upon the expiration of the extended payment deadlines.

- Taxpayers with tax debts who disperse assets or flee.

- Taxpayers who do not comply with decisions on administrative sanctions for tax management within the period stated in the decision on administrative sanctions for tax management, except for cases where execution of the decision is postponed or suspended.