[Legal Update] "Denial of Exit from Vietnam due to Certain Tax Debts"
Denial of Exit from Vietnam due to Certain Tax Debts
March 27, 2025
Denial of Exit from Vietnam due to Certain Tax Debts
Previously, tax authorities could notify immigration authorities to prevent Vietnamese and foreign nationals from leaving the country due to tax debts owed by them or by a business they own or represent, with no threshold amount required. However, Decree 49/2025/ND-CP now sets a clear tax debts threshold for exit bans with effect from 28 February 2025.
When are taxpayers subject to exit bans?
Individual taxpayers and representatives and owners of businesses are subject to an exit ban when:
1. They are subject to tax orders to pay tax debts totaling more than VND 50 million (~$2,000) that have been delinquent for over 120 days.
2. They are the legal representative of a business entity with total tax debts exceeding VND 500 million (~$20,000) that have been delinquent for over 120 days.
3. They own or represent a business entity that no longer operates at its registered address and has tax debts unpaid for 30 days after the notice of a potential exit ban by tax authorities.
4. If they are foreign nationals, Vietnamese nationals living abroad, or Vietnamese nationals leaving Vietnam for overseas residence on a permanent basis, they have any unpaid tax debts, regardless of the amount.
How it works
The tax authorities must first provide the relevant person with a written warning notice of a potential exit ban by way of e-delivery of the notice to his/her e-tax transaction account or publishing the notice on the tax authorities’ website.
If the relevant person or the business entities they represent or own does not resolve the tax debts within 30 days of the date of the forsaid notice, the tax authorities will send the immigration authorities, through internal channels for information exchange between these authorities, a written order to ban the person from leaving the country. The notice, however, is not required to be sent to the person banned from leaving the country, but they can check the website of the immigration authority which normally publishes all exit bans.
Up until when tax dets are resolved, the tax authorities shall notify immigration authorities of any cancellation of the exit ban, which shall become effective within 24 hours of receipt by the immigration authorities.
What to do
Vietnamese and foreign nationals that have international travel plans should check and promptly (at least 3 or 4 days before departure) resolve tax issues to avoid delays in their travel plans.