A Temporary Departure Ban for Tax Debtors: Who is Affected?

Deputy Director General of the General Department of Taxation Dang Ngoc Minh affirmed that the temporary suspension of exit from Vietnam for individuals and organizations with tax debts is carried out by the tax authority in accordance with a very strict process, in compliance with the law. He added that not all individuals with tax debts are subject to this suspension, but only a small number of cases.

According to Mr. Minh, only individuals who are legal representatives of enterprises or organizations that are subject to tax enforcement; Vietnamese citizens who exit the country for permanent residence abroad while still having tax debts; Overseas Vietnamese who have not fulfilled their tax obligations before exiting Vietnam; and foreigners who have not fulfilled their tax obligations before exiting Vietnam will be subject to temporary suspension of exit.

As per legal regulations, the temporary suspension of exit is applied to individuals who leave the country with no intention of returning or who will return to Vietnam after a long period, thus posing a high risk of non-recovery of tax debts, late payment fees, and administrative violation fines.

For citizens traveling abroad for tourism, medical treatment, family visits, conferences, or other similar purposes, they are still allowed to exit the country even if they have outstanding tax debts. Even for those with tax debts who are subject to the temporary suspension, if they provide a guarantee for their tax debts, late payment fees, fines, and other budgetary obligations, they may still be allowed to exit the country.

In cases where the taxpayer has provided a guarantee but fails to pay the tax debt on time, the guarantor is responsible for paying on their behalf. If, by the deadline for paying the tax debt as agreed by the tax authority, the taxpayer has not fully paid the tax debt into the state budget, the guarantor will be subject to enforcement for the guaranteed amount.

Currently, the process for temporarily suspending the exit of individuals and organizations with tax debts involves the tax authority conducting a thorough review and verification of the tax obligations of the individual. The directly managing tax agency then compiles a list of individuals subject to the temporary suspension and sends an official document to the exit and entry management agency, while also informing the taxpayer to fulfill their tax obligations before exiting the country.

On the same day of receiving the document from the tax authority, the exit and entry management agency is responsible for implementing the temporary suspension in accordance with regulations and publishing it on their official website.

In cases where the taxpayer has fulfilled their tax obligations, the tax authority must, within 24 working hours, issue a document canceling the temporary suspension and send it to the exit and entry management agency for implementation, in accordance with regulations.

Mr. Dang Ngoc Minh also recommended that taxpayers proactively inform the tax authority when changing their address. To check for any tax debts, taxpayers can access the official website of the tax authority.

To support taxpayers in accessing relevant information regarding tax finalization, tax debts, and more, the tax industry has developed the eTax Mobile application, similar to the eBanking applications of commercial banks.

ETax Mobile is an electronic tax application installed on smart mobile phones, allowing individuals, self-employed individuals, and households to inquire about tax information anytime, anywhere, on their mobile devices. Using eTax Mobile is extremely simple, allowing taxpayers to pay taxes, inquire about tax obligations, receive tax notifications, and access various other utilities and support.

Currently, about one million individuals have downloaded and are using eTax Mobile. All information related to tax management and tax obligations of individuals is sent by the tax authority to individuals through this application. All personal tax information is confidential and can only be accessed by the individual after logging in (by entering a username and password, fingerprint, or FaceID).

Therefore, for the benefit of both the taxpayers and the state budget, the tax industry encourages all citizens, especially those engaged in production, business, and other activities generating taxable income, to download this software to their mobile devices.