In recent months, reports have surfaced of individuals facing exit restrictions from Vietnam due to outstanding tax obligations. This article will outline the key reasons temporary exit postponements may occur, steps to take if you encounter this situation, and strategies for avoiding it altogether.

According to local media, Vietnam’s tax authorities have successfully collected over VND 1.8 trillion (approx. US$71 million) from nearly 3,000 individuals with outstanding tax debts who were prevented from departing the country. This effort also uncovered around 8,000 cases of businesses changing their registered addresses while still owing taxes.
While these measures showcase effective tax collection efforts, exit restrictions due to tax underpayment can significantly disrupt the lives and work of those impacted, including expatriates, and may also lead to operational disruptions for businesses. Understanding this issue is therefore crucial for businesses to mitigate potential risks to their operations and employees.

What are the legal documents authorizing exit suspension due to tax debts?

Vietnam’s General Department of Taxation implements departure restrictions based on the following legal provisions:

• Law No. 49/2019/QH14 on Exit and Entry of Vietnamese Citizens;
• Law No. 47/2014/QH13 on Entry, Exit, Transit, and Residence of Foreigners in Vietnam;
• Law No. 38/2019/QH14 on Tax Administration; and
• Decree No. 126/2020/ND-CP, dated October 19, 2020, which provides guidance on the Law on Tax Administration.

When may an individual be prevented from leaving Vietnam due to tax debts?

Under Point 1, Article 21 of Decree 126/2020/ND-CP, authorities may defer an individual’s departure for outstanding tax obligations in the following cases:

• Individuals and legal representatives of enterprise taxpayers who have not fulfilled tax obligations under a tax enforcement decision;
• Vietnamese citizens planning to emigrate who have not completed their tax payments;
• Vietnamese citizens residing abroad who have not settled their tax obligations before departure; and
• Foreigners who have not met their tax obligations prior to leaving Vietnam.

Who is authorized to impose, extend, and cancel an exit suspension?

According to Decree 126/2020/ND-CP, the authority to impose, extend, and cancel an exit suspension is as follows:

• The head of the taxpayer’s supervisory tax authority is authorized to impose an exit suspension in cases specified in the decree.
• The official who imposes the exit suspension also holds the authority to extend or cancel it.
• The official must cancel the exit suspension within 24 hours after the taxpayer fulfills their tax obligations.

What are the procedures for imposing, extending, and canceling an exit suspension?

The procedure for implementing an exit suspension is outlined in Decree 126/2020/ND-CP. We explain below:

Step 1: Determination of tax payment status

Once taxpayers’ tax obligations are assessed, the tax authority compiles a list of individuals subject to exit suspension. The authority then sends a suspension notice to both the immigration authority and the affected taxpayers, using Form No. 01/XC in Appendix III of the decree.

Step 2: Notice of exit suspension

Upon receiving the suspension notice, the immigration authority must, on the same day, prevent the listed individuals from departing Vietnam and publish the suspension notice on its website.

Step 3: Monitoring fulfillment of tax obligations

Exit suspensions or cancellations are adjusted based on whether the taxpayer fulfills their tax obligations:

• Tax obligations fulfilled within 24 hours: The tax authority issues a suspension cancellation notice and sends it to the immigration authority, using Form No. 02/XC in Appendix III.
• Tax obligations unmet within 30 days before the suspension period expires: The tax authority issues an extended suspension notice to both the immigration authority and the individual, also using Form No. 02/XC.

Step 4: Notification process

The suspension notice, extended suspension notice, and cancellation notice are sent by post or electronically (if possible) and posted on the tax authority’s website. A notice is deemed successfully delivered once posted online, even if the mailed version is returned.

How long do temporary exit suspensions last?

For Vietnamese citizens:

Under Point b, Clause 1, Article 38 of the 2019 Law on Immigration of Vietnamese Citizens, the exit suspension period ends once individuals fully comply with judgments or decisions issued by competent authorities as stipulated by law. If the specified exit suspension period expires without being formally canceled or extended, the suspension will automatically be lifted.

For foreigners:

According to Article 28 of the 2014 Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam, an exit suspension cannot exceed three years but may be extended as necessary.

Notably, exit suspensions for tax debts do not apply to individuals serving prison sentences or to those required to travel abroad to provide evidence under the Law on Judicial Assistance.

How to track your tax obligation information online

Vietnamese and foreign individuals can monitor their tax payment status through the eTax portal (http://etaxvn.gdt.gov.vn) or the eTax Mobile app on mobile devices. These platforms provide information on tax settlements, outstanding tax debt, and other individual tax details. Taxpayers can make payments, check obligations, view tax notices, and access various support services.

All individual tax information is kept strictly confidential. Users can access their personal data by entering their login credentials (username and password) or by using secure biometric authentication methods, such as fingerprint or FaceID (on eTax Mobile).