Shall Vietnamese residing overseas be imposed exit suspension when failing to complete tax obligations?

Vietnam: What is a exit suspension?

Based on the provisions of Clause 7, Article 2 of the Law on Exit and Entry of Vietnamese Citizens 2019, the exit suspension is explained as follows:

Terminology Explanation

In this Law, the following terms are understood as follows:

..

5. A travel document is a paper issued by a competent authority of Vietnam to a Vietnamese citizen for crossing borders in accordance with an international treaty between Vietnam and a country sharing a common border.

6. Border control is the inspection, surveillance, and verification of individuals and entry-exit documents according to this Law's regulations.

7. exit suspension is the short-term cessation or prohibition of exiting the country for Vietnamese citizens.

8. The national database on the exit and entry of Vietnamese citizens is a collection of digitalized information related to their exit and entry activities, stored, managed, and accessed via information infrastructure.

As per the above regulation, a exit suspension is the short-term cessation or prohibition of exiting the country for Vietnamese citizens.

Shall Vietnamese residing overseas be imposed exit suspension when failing to complete tax obligations? (Image from the Internet)

Shall Vietnamese residing overseas be imposed exit suspension when failing to complete tax obligations?

Based on point c, clause 1, Article 21 of Decree 126/2020/ND-CP, the cases of exit suspension are specified as follows:

Completion of Tax Obligations in Case of Exit

1. The cases of exit suspension include:

a) Individuals or legal representatives of taxpayers who are enterprises under enforcement for tax administration decisions have not completed tax obligations.

b) Vietnamese citizens exiting to reside abroad without completing tax obligations.

c) Vietnamese residing overseas, before exiting, have not completed their tax obligations.

d) Foreigners, before exiting from Vietnam, have not completed tax obligations.

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From the above regulations, it can be seen that Vietnamese residing overseas, before exiting, but have not completed tax obligations, will be subject to a exit suspension.

What is the procedure for imposing a exit suspension in Vietnam?

According to the provisions of clause 3, Article 21 of Decree 126/2020/ND-CP, the procedure for a exit suspension is implemented as follows:

- After reviewing, comparing, and accurately determining the tax obligations of the taxpayer, the tax management authority directly managing the taxpayer will compile a list of individuals, legal representatives of enterprises subject to a exit suspension and draft a document according to Form No. 01/XC in Appendix III issued together with Decree 126/2020/ND-CP to send to the immigration management authority and notify the taxpayer to complete tax obligations before exit.

- On the same day of receiving the exit suspension document from the tax management authority, the immigration management authority is responsible for implementing the exit suspension according to the regulations and posting it on the website of the immigration management authority.

- In the case where the taxpayer has completed tax obligations, within 24 working hours, the tax management authority shall issue a document to cancel the exit suspension according to Form No. 02/XC in Appendix III issued together with Decree 126/2020/ND-CP sent to the immigration management authority to implement the cancellation of the exit suspension according to the regulations.

- If the taxpayer fails to complete tax obligations 30 days before the exit suspension expires, the tax management authority will send a document to extend the exit suspension according to Form No. 02/XC in Appendix III issued together with Decree 126/2020/ND-CP to the immigration management authority and also notify the taxpayer.

- Documents of exit suspension, extension of exit suspension, cancellation of exit suspension can be sent via postal services or electronically if electronic transactions are feasible and will be posted on the website of the tax management authority. If the document sent to the taxpayer by post is returned and the document has been posted on the website of the tax management authority, it is considered sent.

Which authority has the competence to issue a exit suspension decision in Vietnam?

Based on clause 2, Article 21 of Decree 126/2020/ND-CP the competence to issue a exit suspension decision is stated as follows:

- The head of the tax management authority directly managing the taxpayer has the authority to make decisions based on the actual situation and tax management on the locality about choosing cases for exit suspension as specified in clause 1, Article 21 of Decree 126/2020/ND-CP.

- The individual with the authority to decide on a exit suspension has the authority to decide on the extension and cancellation of the exit suspension.

- The individual with the authority to decide on a exit suspension is responsible for canceling the exit suspension no later than 24 working hours from when the taxpayer completes the tax obligation.