Individuals with tax debts from 50 million VND or more in Vietnam are temporarily suspended from exit
Will individuals with tax debts from 50 million VND or more in Vietnam be temporarily suspended from exit?
Based on Article 3 of Decree 49/2025/ND-CP stipulating the threshold for overdue tax amounts and the duration of such in cases of temporary exit suspension:
Article 3. Application of Threshold for Overdue Tax Amount and Duration in Cases of Temporary Exit Suspension
- Individual businesspersons and household business owners subject to enforcement of administrative decisions regarding tax administration with overdue tax amounts of 50 million VND or more, and overdue tax amounts exceeding 120 days beyond the prescribed deadline.
- Individuals who are legal representatives of enterprises, cooperatives, unions of cooperatives subject to enforcement of administrative decisions regarding tax administration, with overdue tax amounts of 500 million VND or more, and overdue tax amounts exceeding 120 days beyond the prescribed deadline.
- Individual businesspersons, household business owners, individuals who are legal representatives of enterprises, cooperatives, unions of cooperatives no longer operating at the registered address with overdue tax amounts, and after 30 days from the date the tax administration authority issues a notice regarding the application of temporary exit suspension measures without fulfilling tax obligations.
- Vietnamese nationals exiting for settlement abroad, Vietnamese nationals residing overseas, and foreigners before exiting from Vietnam with overdue tax amounts not yet settled according to the prescribed deadline.
According to the above regulation, individual businesspersons subject to enforcement of administrative decisions regarding tax administration with overdue tax amounts of 50 million VND or more, and overdue tax amounts exceeding 120 days beyond the prescribed deadline, are subject to temporary exit suspension.
Individuals with tax debts from 50 million VND or more in Vietnam are temporarily suspended from exit (Image from the Internet)
What cases are subject to enforcement of administrative decisions regarding tax administration in Vietnam?
Based on Article 124 of the Law on Tax administration 2019 (amended by Clause 13 Article 6 of the Law Amending the Laws on Securities, Accounting, Independent Audit, State Budget, Management, Use of Public Assets, tax administration, Personal Income Tax, National Reserve, Handling of Administrative Violations 2024), cases subject to enforcement of administrative decisions regarding tax administration include:
- Taxpayers with overdue taxes exceeding 90 days from the due date.
- Taxpayers with overdue taxes at the end of the extended payment period.
- Taxpayers with overdue taxes engaging in asset dispersion or absconding.
- Taxpayers not complying with the decision to sanction administrative violations regarding tax administration within the time frame indicated in the sanction decision, except in cases of deferral or suspension of the sanction decision.
- Tax enforcement measures are not yet taken in cases where the tax administration authority accounts for overdue taxes within the time frame; no late payment interest is imposed as per this Law; gradual payment is allowed but not exceeding 12 months from the start of the tax enforcement period.
- The gradual payment of overdue taxes is considered by the direct management authority of the taxpayer based on the taxpayer's request and must be guaranteed by a credit institution. The Minister of Finance prescribes the number of installments and the dossier, procedures for gradual payment of overdue taxes.
- No enforcement measures are taken against taxpayers owing customs fees and transit goods fees.
What is the time limit for cancellation of the temporary exit suspension for individuals with tax debts of VND 50 million or more in Vietnam?
Based on Article 4 of Decree 49/2025/ND-CP stipulating the notification of temporary exit suspension and cancellation of temporary exit suspension:
Article 4. Notification of Temporary Exit Suspension and Cancellation of Temporary Exit Suspension
[...]
- After 30 days from the date of sending the notification to the taxpayer as regulated in Clause 1, Clause 2, Clause 3, Article 3 of this Decree regarding the application of temporary exit suspension by electronic means or notice on the tax administration authority's electronic information portal, if the taxpayer has not fulfilled their tax obligations, the direct tax administration authority issues a document on temporary exit suspension sent to the immigration management authority for execution of the temporary exit suspension.
If the taxpayer has fulfilled their tax obligations, the tax administration authority must immediately issue a notice to cancel the temporary exit suspension sent to the immigration management authority. The immigration management authority must execute the cancellation of the temporary exit suspension within 24 hours of receiving the notice from the tax administration authority.
The notification of temporary exit suspension and cancellation of temporary exit suspension is sent to the immigration management authority through data transmission between the information technology systems of the tax administration authority and the immigration management authority. If electronic means are not possible, the tax administration authority sends the notification on temporary exit suspension and cancellation of temporary exit suspension to the immigration management authority in paper format.
According to the above regulation, individuals owing taxes from 50 million VND or more who have completed their tax obligations will have the tax administration authority immediately issue a notice to cancel the temporary exit suspension sent to the immigration management authority.
The immigration management authority must execute the cancellation of the temporary exit suspension within 24 hours from the time of receiving the notice from the tax administration authority.
