The Vietnam Chamber of Commerce and Industry (VCCI) has recently submitted feedback to the Ministry of Finance regarding the draft amendment to the Law on Tax Administration. VCCI also consulted the business community on the issue of temporary exit bans for tax debtors.
A taxpayer working at a tax office in Ho Chi Minh City. Photo: Hoàng Triều |
According to VCCI, the draft law has added a provision to delay the departure of individuals who are beneficial owners of businesses that have not fulfilled their tax obligations.
Citing the Enterprise Law, VCCI clarifies that individuals holding at least 25% of the capital are considered beneficial owners, regardless of their management authority.
“Beneficial owners are only liable within the scope of their contributed capital or shares and are not indefinitely responsible for the enterprise’s tax liabilities,” VCCI stated. The organization also noted that, in many cases, beneficial owners do not directly manage or make decisions regarding the enterprise’s operations.
Meanwhile, the purpose of the temporary exit ban is to pressure those who directly own and manage the enterprise to collect taxes. Therefore, applying this ban to beneficial owners is overly broad and infringes on their freedom of movement, especially for those not directly involved in management.
This, according to VCCI, could reduce the attractiveness of the investment environment, particularly for foreign investors, who may face travel restrictions due to unpaid taxes by the enterprises they invest in.
Furthermore, tax authorities already have numerous enforcement measures, such as deducting funds from bank accounts, disallowing the use of invoices, and seizing and auctioning assets. The temporary exit ban should be applied only in specific cases and to the right targets. Thus, VCCI recommends that the drafting agency remove this provision.
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Under the current regulations of Decree 49 issued by the Government, thresholds for tax debt amounts and debt periods are set for temporary exit bans. These apply to individual business owners and household business owners subject to coercion when their tax debt exceeds 50 million VND and has been overdue for more than 120 days. Individuals who are legal representatives of enterprises, cooperatives, or cooperative unions are subject to coercion when their tax debt exceeds 500 million VND and has been overdue for more than 120 days. |
Minh Chiến
– 09:30 28/09/2025
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