Fulfilling tax obligations is a fundamental responsibility of all citizens and organizations in Vietnam. In certain cases, failure to comply with tax obligations can lead to administrative measures to ensure compliance. One such measure is the temporary exit suspension for individuals who have not completed their tax obligations. This regulation not only aims to protect the State’s rights in recovering tax debts but also reflects effective management of tax-related issues. This article analyzes the regulations on temporary exit suspension for unfulfilled tax obligations based on Decree No. 126/2020/ND-CP and the Law on Exit and Entry of Vietnamese Citizens 2019.

I. Legal Basis

Decree No. 126/2020/ND-CP, issued on October 19, 2020, provides detailed guidance on several provisions of the Law on Tax Administration. This decree serves as a crucial legal document addressing tax-related issues, including regulations on temporary exit suspension for individuals with unfulfilled tax obligations.

The Law on Exit and Entry of Vietnamese Citizens 2019 outlines the conditions and procedures for Vietnamese citizens to leave the country. It specifies cases where citizens may face temporary exit suspension, including failure to fulfill tax obligations.

II. Cases of Temporary Exit Suspension

Temporary exit suspension primarily applies to individuals and organizations with outstanding tax obligations. Specific cases include:

• Individuals or legal representatives of enterprises under tax enforcement actions who have not fulfilled tax obligations.
• Vietnamese citizens leaving the country for permanent residence abroad but have not completed their tax obligations.
• Overseas Vietnamese citizens who have not settled their tax obligations before leaving the country.
• Foreigners departing from Vietnam who have not fulfilled their tax obligations.

III. Duration of Temporary Exit Suspension

The suspension remains in effect until the individual or organization fulfills the required tax obligations or complies with the relevant court judgment or administrative decision. Tax debtors will be subject to temporary exit suspension until their tax liabilities are fully resolved.

IV. Procedures for Temporary Exit Suspension for Tax Debtors

Verification and Notification:

• Tax authorities conduct a thorough review and verification of the tax debtor’s obligations.
• A list of individuals subject to temporary exit suspension is prepared and submitted to the immigration management authority, along with a notification to the taxpayer regarding their status.

Implementation: The immigration management authority enforces the temporary exit suspension based on the submitted list.

Lifting the Suspension: Once the tax obligations are fulfilled, the tax authority issues a written document to cancel the temporary exit suspension, notifying both the immigration authority and the taxpayer.

Extension of Suspension: If the taxpayer has not fulfilled their obligations 30 days before the expiration of the suspension period, the tax authority will send a written request to extend the suspension.

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