When shall taxpayers be suspended from exit from Vietnam for failing to fulfill their tax obligations?

When shall taxpayers be suspended from exit from Vietnam for failing to fulfill their tax obligations?

Based on Clause 1, Article 21 of Decree 126/2020/ND-CP, the cases for exit suspension include:

- Individuals, or individuals acting as legal representatives of taxpayers who are enterprises, in cases where they are being coerced to execute administrative decisions regarding tax management and have not completed their tax obligations.

- Vietnamese citizens planning to emigrate abroad who have not fulfilled their tax obligations.

- Overseas Vietnamese citizens who have not fulfilled their tax obligations before emigrating.

- Foreigners who have not fulfilled their tax obligations before exiting from Vietnam.

When shall taxpayers be suspended from exit from Vietnam for failing to fulfill their tax obligations?

What are procedures for implementing a exit suspension when failing to fulfill tax obligations in Vietnam?

Based on Clause 3, Article 21 of Decree 126/2020/ND-CP, the procedure for implementing exit suspension when tax obligations are incomplete is as follows:

- After reviewing and accurately determining the taxpayer's tax obligations, the tax management authority directly managing the taxpayer lists the individuals, or individuals acting as legal representatives of enterprises, who are subject to exit suspension and drafts a document using Form No. 01/XC in Appendix III issued with this Decree to send to the immigration management agency while also informing the taxpayer to fulfill the tax obligation before exiting.

- On the same day of receiving the notice of exit suspension from the tax management authority, the immigration management agency is responsible for implementing the exit suspension as regulated and publishes it on the website of the immigration management authority.

Note:

If the taxpayer completes the tax obligations, the tax management authority must issue a document to cancel the exit suspension within 24 working hours using Form No. 02/XC in Appendix III issued with Decree 126/2020/ND-CP and send it to the immigration management authorities to carry out the cancellation according to regulations.

If the failing to fulfill tax obligations 30 days before the end of the exit suspension period, the tax management authority sends a document to extend the suspension using Form No. 02/XC in Appendix III issued with Decree 126/2020/ND-CP to the immigration management authority, while also notifying the taxpayer.

Documents regarding exit suspension, extension, and cancellation are sent via postal services or electronically if conditions for electronic transactions are met and published on the tax management authority's website.

In cases where documents sent to taxpayers via postal services are returned, but have been published on the tax management authority's website, they are considered sent.

Which authority shall decide on exit suspensions for taxpayers in Vietnam?

Based on Clause 2, Article 21 of Decree 126/2020/ND-CP, the regulation is as follows:

Fulfillment of tax obligations in the case of exit

1. The cases for exit suspension include:

a) Individuals, or individuals who are legal representatives of enterprises, being coerced to execute administrative decisions regarding tax management who have not fulfilled tax obligations.

b) Vietnamese citizens emigrating abroad who have not fulfilled tax obligations.

c) Overseas Vietnamese citizens who have not fulfilled tax obligations before emigrating.

d) Foreigners who have not fulfilled tax obligations before exiting from Vietnam.

2. Authority to decide on exit suspension, extension, and cancellation

a) The head of the tax management authority directly managing the taxpayer has the authority, based on the actual situation and tax management tasks in the locality, to decide on the choice of cases for exit suspension according to those stated in Clause 1 of this Article.

b) The person with the authority to decide on exit suspension also has the authority to decide on extensions and cancellations.

c) The person with the authority to decide on exit suspension is responsible for canceling the suspension no later than 24 working hours after the taxpayer fulfills their tax obligations.

The head of the tax management authority directly managing the taxpayer has the authority, based on the actual situation and tax management tasks in the locality, to decide on the choice of cases for exit suspension.

The person with the authority to decide on exit suspension also has the authority to decide on extensions and cancellations.