Exit suspension refers to suspension or restriction from making exit for a definite period of Vietnamese citizens. Persons who have not fulfilled his/her tax obligations shall be suspended from exit from Vietnam.
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According to Clause 1 Article 66 of the Law on Tax Administration 2019 of Vietnam, taxpayers against whom tax decisions are enforced, Vietnamese citizens exiting Vietnam to reside overseas, Vietnamese people residing overseas, foreigners exiting Vietnam shall fulfill their tax liability before the exit. Otherwise, they shall be suspended from exit in accordance with immigration laws.
Besides, according to Article 21 of the Decree No. 126/2020/NĐ-CP of Vietnam’s Government (effective from December 05, 2020), there are 04 cases that exit from Vietnam will be suspended, including:
- The individual, the individual that is the legal representative of an enterprise has not fulfilled tax obligations under a tax enforcement decision.
- A Vietnamese national has not fulfilled his/her tax obligations before emigration.
- A Vietnamese national residing overseas has not fulfilled his/her tax obligations before exit.
- A foreigner has not fulfilled his/her tax obligations before exit.
Thus, according to the above regulation, the individual, the individual that is the legal representative of an enterprise; a Vietnamese national exits to settle abroad; a Vietnamese national residing overseas shall be obliged to fulfill their tax obligations. In case the taxpayer has not fulfilled the tax payment obligation (still owes tax) or is being forced to execute an administrative decision on tax administration but the tax payment obligation has not yet been fulfilled (for individuals or individuals who are legal representatives), they shall be suspended from exit from Vietnam until the tax payment obligation is fulfilled.
In comparison with Decree No. 83/2013/NĐ-CP (amended by Decree No. 12/2015/NĐ-CP), the Decree No. 126/2020/NĐ-CP of Vietnam’s Government has supplemented the case of the individual, the individual that is the legal representative of an enterprise has not fulfilled tax obligations under a tax enforcement decision to cases that exit from Vietnam will be suspended. Concurrently, Decree No. 126/2020/NĐ-CP of Vietnam’s Government also specifies procedures for imposing, extending and canceling exit suspension as follows:
- After a taxpayers’ tax obligations are determined, the tax authority shall compile a list of individuals suspended from exit and send a suspension notice (Form No. 01/XC in Appendix III hereof) to the immigration authority and the taxpayers.
- Within the day on which the suspension notice is received, the immigration authority shall suspend these persons from exit and post the suspension notice on its website.
- If a suspended person has fulfilled his/her tax obligations within 24 working hours, the tax authority shall issue a suspension cancellation notice (Form No. 02/XC in Appendix III) and send it to the immigration authority.
Note: For suspended persons who have not fulfilled their tax obligations in 30 days before expiration of the suspension period, the tax authority shall send a notice of extended suspension (Form No. 02/XC) to the immigration authority and these persons.
Ty Na
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- Decree No. 126/2020/NĐ-CP
