Tax policy Q&A:Departure suspension due to tax debt - Things to note
To improve taxpayer compliance, Nghe An Provincial Tax Department is stepping up the application of compulsory measures to temporarily suspend exit from the country for taxpayers with tax debts to ensure the fulfillment of tax obligations to the State budget.
Nghe An Provincial Tax Department informs businesses about some regulations on this content:
Determine cases of temporary suspension of exit
Clause 1, Article 66 of the Law on Tax Administration No. 38/2019/QH14 stipulates the completion of tax payment obligations in case of exit:
“1. Taxpayers who are subject to enforcement of administrative decisions on tax management, Vietnamese people leaving the country to settle abroad, Vietnamese people settling abroad, and foreigners must fulfill their tax payment obligations before leaving Vietnam; in case they have not fulfilled their tax payment obligations, their exit will be temporarily suspended according to the provisions of the law on exit and entry.”
Clause 7, Article 124 of the Law on Tax Administration No. 38/2019/QH14 stipulates cases of compulsory enforcement of administrative decisions on tax administration.
“7. An individual who is the legal representative of a taxpayer must fulfill the tax payment obligations of the enterprise being subject to enforcement of an administrative decision on tax management before leaving the country and may be temporarily suspended from leaving the country in accordance with the provisions of law on exit and entry.”
Clause 5, Article 36 of the Law on Exit and Entry of Vietnamese Citizens No. 49/2019/QH14 stipulates cases of temporary suspension of exit:
“5. Taxpayers, legal representatives of enterprises being forced to execute administrative decisions on tax management, Vietnamese people leaving the country to settle abroad, Vietnamese people residing abroad who have not fulfilled their tax payment obligations before leaving the country according to the provisions of the law on tax management.”
Clause 1, Article 21 of Decree 126/2020/ND-CP stipulates:
“1. Cases of temporary suspension of exit include:
a) Individuals, individuals who are legal representatives of taxpayers who are enterprises that are subject to compulsory enforcement of administrative decisions on tax management and have not fulfilled their tax payment obligations.
b) Vietnamese people leaving the country to settle abroad have not fulfilled their tax obligations.
c) Vietnamese people residing abroad who have not fulfilled their tax obligations before leaving the country.
d) Foreigners who have not fulfilled their tax payment obligations before leaving Vietnam.”
Thus, the cases of enforcement by tax authorities to issue a Notice of temporary suspension of exit as prescribed in Clause 2, Article 21 of Decree 126/2020/ND-CP include:
- Individuals, individuals who are legal representatives of taxpayers who are enterprises that are subject to compulsory enforcement of administrative decisions on tax management and have not fulfilled their tax payment obligations.
- Vietnamese people leaving the country to settle abroad, Vietnamese people settling abroad before leaving the country, foreigners before leaving Vietnam but have not completed their tax payment obligations.
Currently, the measure of temporary suspension of exit for individuals and legal entities with tax debts is implemented by the tax authority according to the procedure. After reviewing, comparing, and accurately determining the tax payment obligations of individuals, the tax authority directly managing the taxpayer makes a list of individuals subject to temporary suspension of exit and sends a document to the immigration authority, and at the same time sends it to the taxpayer to complete the tax payment obligation before leaving the country.
Immediately on the day of receiving the document from the tax authority, the immigration authority is responsible for implementing the temporary suspension of exit according to regulations and posting it on the immigration authority's website.
In case the taxpayer has fulfilled his/her tax payment obligation, within 24 working hours, the tax authority must issue a document canceling the temporary suspension of exit and send it to the immigration authority to cancel the temporary suspension of exit according to regulations.
Therefore, to ensure their rights and obligations, taxpayers, before leaving the country, need to proactively access the tax authority's website or the eTax Mobile application to look up tax obligations, ensuring that they fulfill their tax obligations before leaving the country./.
