What is the authority to impose suspension from exit from Vietnam for failing to fulfill tax obligations?

What is the authority to impose suspension from exit from Vietnam for failing to fulfill tax obligations?

According to Clause 2, Article 21 of Decree 126/2020/ND-CP, regulations concerning the authority to decide on exit postponement, extension of exit postponement, or cancellation of exit postponement are as follows:

- The head of the tax administration agency directly managing the taxpayer has the authority, based on the actual situation and tax management on the local level, to decide on the selection of cases for exit postponement as stipulated in Clause 1 of this Article.

- The person authorized to decide on exit postponement also has the authority to extend or cancel the exit postponement.

- The person authorized to decide on exit postponement is responsible for canceling the exit postponement no later than 24 working hours from the time the taxpayer fulfills their tax obligations.

Thus, the head of the tax administration agency directly managing the taxpayer will be the one with the authority to issue a decision on exit postponement in cases of tax debt.

Note that when a taxpayer fulfills their tax obligation, the authorized person must cancel the exit postponement no later than 24 working hours.

What is the authority to impose suspension from exit from Vietnam for failing to fulfill tax obligations? (Image from the Internet)

What are procedures for implementing suspension from exit from Vietnam for failing to fulfill tax obligations?

According to Clause 3, Article 21 of Decree 126/2020/ND-CP, the procedures for implementing exit postponement, extending exit postponement, and canceling exit postponement are as follows:

(1) After reviewing, cross-checking, and accurately determining the taxpayer's tax obligations, the tax administration agency directly managing the taxpayer compiles a list of individuals and legal representatives of enterprises subject to exit postponement and drafts a document according to Form No. 01/XC in Appendix 3 of Decree 126/2020/ND-CP, sending it to the immigration management agency and informing the taxpayer to fulfill their tax obligations before exiting the country.

(2) On the day the immigration management agency receives the exit postponement document from the tax administration, it is responsible for implementing the exit postponement as per the regulations and posting it on the website of the immigration management agency.

(3) If the taxpayer has fulfilled their tax obligations, within 24 working hours the tax administration will issue a document to cancel the exit postponement according to Form No. 02/XC in Appendix 3 of Decree 126/2020/ND-CP, sending it to the immigration management agency to carry out the cancellation of exit postponement according to regulations.

Before the 30-day exit postponement period expires, if the taxpayer has not fulfilled their tax obligations, the tax administration sends a document to extend the exit postponement according to Form No. 02/XC in Appendix 3 of Decree 126/2020/ND-CP to the immigration management agency, also notifying the taxpayer.

(4) Documents for exit postponement, extension, and cancellation are sent by mail or by electronic means if they meet the conditions for electronic transactions and are posted on the tax administration's website. If documents sent to the taxpayer by mail are returned and have been posted on the tax administration's website, they are considered sent.

How long is the duration of taxpayer exit postponement from Vietnam?

According to point b of Clause 1, Article 38 of The Law on Exit and Entry of Vietnamese Citizens 2019, the duration for exit postponement and extension is stipulated as follows:

Duration of Exit Postponement and Extension

1. The duration for exit postponement and extension is prescribed as follows:

a) For cases stipulated in Clause 1, Article 36 of this Law, the duration for exit postponement is implemented according to the Criminal Procedure Code;

b) For cases stipulated in Clauses 2, 3, 4, 5, and 6, Article 36 of this Law, the exit postponement ends when the violator, or person obligated, complies with the judgment or decision of the competent authority according to this Law;

c) For cases under Clause 7, Article 36 of this Law, the duration of exit postponement does not exceed 1 year and can be extended, each extension not exceeding 1 year;

d) For cases under Clause 8, Article 36 of this Law, the duration of exit postponement does not exceed 6 months and can be extended, each extension not exceeding 6 months;

đ) For cases under Clause 9, Article 36 of this Law, the duration of exit postponement is calculated until there is no longer an impact on national defense and security as decided by the Minister of National Defense, Minister of Public Security.

2. If already subjected to exit postponement, unless canceled or not extended, the postponement is automatically canceled upon the expiry of the period stated in Clause 1 of this Article.

Thus, a taxpayer violating tax obligations will have their exit postponed until they fulfill their tax obligations as prescribed.