What are amendments to subjects to be temporarily suspended from exiting Vietnam due to tax debts?

What are amendments to subjects to be temporarily suspended from exiting Vietnam due to tax debts?

To be specific: in Article 6 of the Draft Law amending and supplementing certain articles of the Securities Law, Accounting Law, Independent Audit Law, State Budget Law, Law on Management and Use of Public Assets, Law on Tax Administration, National Reserve Law, the regulations are as follows:

Amendment and Supplement of Certain Articles of the Law on Tax Administration

7. Amend and Supplement Clause 1 of Article 66

Orientation for Amendment and Supplement:

Incorporate individuals who are the legal representatives of enterprises as stated in Clause 7, Article 124 of the Law on Tax Administration into Clause 1, Article 66 of the Law on Tax Administration for consistency. Concurrently, add subjects temporarily suspended from exiting, including individuals who are the legal representatives of cooperatives, cooperative unions, business household heads, and self-employed individuals.

Thus, the Draft Law proposes adding subjects temporarily suspended from exiting due to tax debts, including individuals who are the legal representatives of cooperatives, cooperative unions, business household heads, and self-employed individuals.

Download the Draft Law amending and supplementing certain articles of the Law on Tax Administration: Here

What are amendments to subjects to be temporarily suspended from exiting Vietnam due to tax debts? (Image from the Internet)

Who shall be temporarily suspended from exiting Vietnam due to tax debts under the 2019 Law on Tax Administration?

Based on Clause 7, Article 124 of the 2019 Law on Tax Administration, the provisions are as follows:

Cases Subject to Coercive Enforcement of Administrative Decisions on Tax Administration

…

7. Individuals who are legal representatives of taxpayers must fulfill their tax obligations for enterprises under coercive enforcement of administrative decisions on tax administration before exiting and can be temporarily suspended from exiting according to the laws on exit and entry.

Simultaneously, Clause 5, Article 36 of the 2019 Law on Exit and Entry of Vietnamese Citizens stipulates cases of temporary suspension from exiting due to tax debts as follows:

Cases of Temporary Suspension from Exiting

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5. Taxpayers, legal representatives of enterprises under coercive enforcement of administrative decisions on tax administration, Vietnamese citizens exiting to settle abroad, and Vietnamese citizens residing abroad before exiting, who have not fulfilled their tax obligations as stipulated by tax management laws.

Thus, subjects who can be temporarily suspended from exiting due to tax debts include taxpayers, legal representatives of enterprises, Vietnamese citizens exiting to settle abroad, and Vietnamese citizens residing abroad before exiting.

What is the current content of tax management in Vietnam?

According to Article 4 of the 2019 Law on Tax Administration, the content of tax management includes:

- Tax registration, tax declaration, tax payment, tax determination.

- Tax refunds, tax exemptions, tax reductions, non-collection of taxes.

- Freezing of tax debts; debt relief of tax amounts, late payment fees, fines; exemption from late payment fees, fines; non-calculation of late payment fees; tax payment extensions; gradual payment of tax debts.

- Taxpayer information management.

- Invoice and document management.

- Tax inspection, tax audit, and implementation of measures to prevent, counteract, and stop tax law violations.

- Coercive enforcement of administrative decisions on tax administration.

- Handling of administrative violations in tax management.

- Resolution of tax-related complaints and denunciations.

- International tax cooperation.

- Propaganda and support for taxpayers.

What are the principles of current tax management in Vietnam?

The principles of tax management are specified in Article 5 of the 2019 Law on Tax Administration and include:

- All organizations, households, business households, and individuals must fulfill their tax obligations as stipulated by law.

- Tax management agencies and other state agencies assigned tax collection duties must manage taxes per this Law and related legal documents, ensuring transparency, equality, and protection of the legitimate rights and interests of taxpayers.

- Agencies, organizations, and individuals are responsible for participating in tax management according to the law.

- Implement administrative procedure reforms and modern information technology applications in tax management; apply tax management principles per international practices, including the principle of the substance of transactions determining tax obligations, risk management principles in tax administration, and other principles suitable to Vietnam's conditions.

- Apply priority measures in implementing tax procedures for export and import goods according to customs laws and the Government's regulations.

What Actions are Prohibited in Tax Management?

According to Article 6 of the 2019 Law on Tax Administration, prohibited actions in tax management include:

- Collusion, conspiracy, and protecting tax evasion or price transfer between taxpayers and tax management officials or tax management agencies.

- Causing trouble and harassment for taxpayers.

- Embezzling or misusing tax funds.

- Deliberately not declaring or incorrectly and untimely declaring the amount of tax payable.

- Obstructing tax management officials from performing their duties.

- Using another taxpayer's tax code to commit illegal acts or allowing others to use one's tax code not compliant with the law.

- Selling goods and providing services without issuing invoices as required by law, using illegal invoices, and improperly using invoices.

- Tampering with, misappropriating, unauthorized access, and destruction of taxpayer information systems.