Which authority has the power to extend the suspension from exit from Vietnam for persons failing to fulfill tax obligations?
Which authority has the power to extend the suspension from exit from Vietnam for persons failing to fulfill tax obligations?
Based on point b, clause 2, Article 21 of Decree 126/2020/ND-CP, the regulation is as follows:
Fulfillment of Tax Payment Obligations in the Case of Exit
- The cases for suspension from exit from Vietnam include:
a) Individual taxpayers or individuals who are the legal representatives of enterprises subject to enforcement measures regarding administrative decisions on tax management and have not completed their tax obligations.
b) Vietnamese citizens exiting the country to settle abroad who have not completed their tax obligations.
c) Vietnamese citizens residing overseas before exiting who have not completed their tax obligations.
d) Foreigners before exiting from Vietnam who have not completed their tax obligations.
- The authority to decide on suspension from exit from Vietnam, extension of suspension from exit from Vietnam, or cancellation of suspension from exit from Vietnam:
a) The head of the tax management agency directly managing the taxpayer has the authority, based on the actual situation and tax management operations in the area, to decide on selecting cases for suspension from exit from Vietnam as specified in clause 1 of this Article.
b) The person who has the authority to decide on suspension from exit from Vietnam also has the authority to decide on the extension and cancellation of the suspension from exit from Vietnam.
c) The person with the authority to decide on suspension from exit from Vietnam has the responsibility to cancel the suspension from exit from Vietnam within no more than 24 working hours from when the taxpayer completes their tax obligations.
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According to the above regulation, the authority to extend the suspension from exit from Vietnam for persons failing to fulfill tax obligations is held by the authority that decides on the suspension from exit from Vietnam.
Moreover, according to point a, clause 2, Article 21 of Decree 126/2020/ND-CP, the authority deciding on suspension from exit from Vietnam is the head of the tax management agency directly managing the taxpayer. This individual has the authority based on the actual situation and tax management tasks in the area to select cases for suspension from exit from Vietnam.
Thus, the authority to extend the suspension from exit from Vietnam for persons failing to fulfill tax obligations is the head of the tax management agency directly managing the taxpayer.
Which authority has the power to extend the suspension from exit from Vietnam for persons failing to fulfill tax obligations? (Image from the Internet)
What are the procedures for implementing the extension of suspension from exit from Vietnam for persons failing to fulfill tax obligations?
Based on clause 3, Article 21 of Decree 126/2020/ND-CP, the procedures for implementing the extension of suspension from exit from Vietnam for persons failing to fulfill tax obligations are as follows:
- After reviewing and accurately determining the tax payment obligations of the taxpayer, the tax management agency directly managing the taxpayer compiles a list of individuals, including those who are the legal representatives of enterprises, subject to exit suspension. The agency prepares a document in compliance with Form No. 01/XC in Appendix III, which is issued alongside Decree 126/2020/ND-CP, to send to the immigration management agency and concurrently notify the taxpayer to fulfill their tax obligations before exiting.
- On the same day of receiving the tax management agency's exit suspension document, the immigration management agency is responsible for executing the suspension from exit from Vietnam as per regulations and posting it on their website.
- If the taxpayer has fulfilled their tax obligations, the tax management agency issues a document canceling the exit suspension within 24 working hours, in accordance with Form No. 02/XC in Appendix III issued alongside Decree 126/2020/ND-CP, and sends it to the immigration management agency to perform the cancellation of exit suspension as regulated.
+ If within 30 days before the expiration of the suspension from exit from Vietnam period the taxpayer has not completed their tax obligations, the tax management agency sends an extension document of the suspension from exit from Vietnam according to Form No. 02/XC in Appendix III issued alongside Decree 126/2020/ND-CP to the immigration management agency, simultaneously notifying the taxpayer.
- Documents concerning suspension from exit from Vietnam, extension of suspension from exit from Vietnam, and cancellation thereof are sent via postal services or by electronic means if electronic transaction conditions are met and are posted on the tax management agency's website. In cases where the postal delivery document to the taxpayer is returned and the document has been posted on the tax management agency's website, it is considered as sent.
Who is subject to suspension from exit from Vietnam when failing to fulfill tax obligations?
Based on clause 1, Article 66 of Law on Tax Administration 2019, amended by clause 9, Article 6 of the Law Amending Laws on Securities, Accounting, Independent Audit, State Budget, Management and Use of Public Property, Tax Administration, Personal Income Tax, National Reserve, Handling of Administrative Violations 2024, which regulates the subjects to suspension from exit from Vietnam when failing to fulfill tax obligations as follows:
Fulfillment of Tax Payment Obligations in the Case of Exit
Individuals engaged in business activities, business household heads, individuals who are legal representatives of enterprises, cooperatives, unions of cooperatives subject to enforcement of administrative decisions on tax management, Vietnamese individuals exiting to settle abroad, Vietnamese individuals residing overseas, and foreigners before exiting from Vietnam must complete their tax obligations; those who have not completed their tax obligations regarding the tax debt amount and debt duration as defined by the Government of Vietnam shall be subject to suspension from exit from Vietnam according to regulations on exit and entry. The tax management agency must notify the taxpayer in advance about the application of the suspension from exit from Vietnam measure.
The tax management agency is responsible for notifying the immigration management agency about the individuals and taxpayers specified in clause 1 of this Article.
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Thus, the subjects to suspension from exit from Vietnam when failing to fulfill tax obligations are:
- Individuals engaged in business activities, business household heads, individuals who are legal representatives of enterprises, cooperatives, unions of cooperatives subject to enforcement for administrative decisions on tax management;
- Individuals who are Vietnamese citizens exiting to settle abroad, Vietnamese citizens residing overseas, and foreigners before exiting from Vietnam must fulfill their tax obligations;
