Being restricted from leaving the country due to tax debt is common practice in all countries worldwide. However, each country has different detailed regulations. The rules for temporary exit suspension due to tax debts in Vietnam are as follows:

Taxpayers or legal representatives of an enterprise being subject to enforcement of tax administration-related administrative decisions related to tax management will have their departure temporarily suspended.

CASES IN WHICH TAXPAYERS ARE SUBJECT TO TAX DEBT ENFORCEMENT

Taxpayers are subject to tax debt enforcement in the following cases:

• Tax debt exceeds 90 days and the grace period (if any) has expired.

• The person in tax debt attempts to flee or dispersal assets.

Through observing reality in society, we notice that some taxpayers under tax enforcement are temporarily barred from leaving the country, while in other cases, despite tax enforcement, departure is not suspended.

The answer is as follows:

The tax authorities typically employ 7 methods of tax enforcement, and temporary exit suspension is considered the 8th measure.

The appropriate enforcement measure depends on the taxpayer’s specific situation.

We often notice that individuals who are temporarily barred from leaving the country are those holding the position of legal representative of a business. As defined in the 2019 Law on Tax Administration, Article 124, "Individuals acting as legal representatives must fulfill the tax obligations of a business under tax enforcement before leaving the country and may be temporarily barred from departure."

7 METHODS OF TAX DEBT ENFORCEMENT

Here are the 7 methods of tax debt enforcement:

1. Withholding money from bank accounts.
2. Deducting a portion of wages or income.
3. Halting customs procedures.
4. Suspending invoice usage and making a public announcement.
5. Seizing assets and auctioning them.
6. Collection of money or other assets.
7. Revocations of business license.