Temporary exit suspension due to tax debts applied for some people

Tax officers help people complete their tax obligations. VNA/VNS Photo

HÀ NỘI — Not all individuals who owe taxes will have their departure delayed – it will only apply to a small number of people, according to the General Department of Taxation.

According to Deputy General Director of General Department of Taxation Đặng Ngọc Minh, the implementation of exit suspension for individuals and legal entities with tax debts is conducted by the tax authorities through a stringent process in accordance with the law. It’s important to note that not all individuals with tax debt will have their departure delayed and this measure only applies to a small number of cases.

The exit suspension specifically targets individuals who serve as legal representatives of businesses and organisations subject to tax enforcement. Additionally, Vietnamese citizens leaving the country to settle abroad while still owing taxes, Vietnamese residents abroad who have not fulfilled their tax payment obligations before their departure and foreigners who have outstanding tax payment obligations in Việt Nam, will experience a postponement of their exit.

According to the law, temporary exit measures are exclusively applicable to individuals who travel abroad and do not return or those who return to Việt Nam after an extended period. This is due to the risk associated with the inability to recover tax debt and the potential for late payment. It’s important to note that the penalties for tax administrative violations, including late payment and fines, are substantial.

Individuals who travel abroad for purposes such as tourism, medical treatment, visiting relatives, attending seminars, conferences and more can still depart the country normally, even if they have outstanding tax obligations.

Even in cases where tax debt is temporarily postponed, individuals can still leave the country if they provide a guarantee for the payment of taxes, late payment interest, fines and other revenues owed to the State budget.

If a taxpayer has a guarantee for their tax debt but fails to make timely payment, the guarantor becomes responsible for paying on their behalf. At the end of the deadline specified in the written approval from the tax administration agency, if the taxpayer has not fully paid their debt to the state budget, the guarantor who fails to fulfil their obligation will be subject to enforcement for the guaranteed amount.

The current implementation of temporary exit suspension for individuals and legal entities with tax debt follows the tax authority’s procedures, which involve careful review, comparison and accurate determination of each individual’s tax payment obligations. The tax agency responsible for managing the taxpayer directly compiles a list of individuals subject to temporary exit suspension and prepares the necessary documentation to be sent to the immigration management agency. Simultaneously, the taxpayer receives the document, providing them with an opportunity to fulfil their tax obligations before leaving the country.

Upon receiving the document from the tax authority, the immigration authority is responsible for adhering to regulations and suspending the exit of individuals as instructed. The information regarding the exit suspension is also posted on the website of the immigration authority.

If a taxpayer has fulfilled their tax payment obligation, the tax authority must issue a document to cancel the exit suspension within 24 working hours and send it to the immigration authority for the necessary cancellation process, in accordance with the regulations on temporary exit suspension.

Minh also mentioned the importance of taxpayers proactively notifying the tax authority when changing addresses. It is advisable to regularly check tax debt and access the tax administration’s website to ensure the completion of tax obligations before leaving the country.

Furthermore, the General Department of Taxation has developed the eTax Mobile application, similar to the eBanking applications used by commercial banks. This application is designed to assist taxpayers in understanding information related to tax settlement, tax debt and other relevant details concerning individual taxation.

ETax Mobile is a user-friendly electronic tax application designed for smartphones, enabling individuals, sole proprietors, and business households to conveniently access tax information anytime and anywhere using their mobile devices.

Using eTax Mobile is simple, as taxpayers can easily make tax payments, check their tax obligations, view tax notices and benefit from various other utilities and support services.

Currently, approximately one million individuals have downloaded and used eTax Mobile. This application serves as the primary channel through which the tax authority communicates all tax-related information and individual tax obligations to users.

All individual tax information is strictly confidential. Only when users access the application by providing their login credentials (username and password) or using secure biometric authentication methods such as fingerprint or FaceID, can they gain access to their personal tax information.

Therefore, to ensure their rights, fulfil their obligations and effectively manage their tax responsibilities towards the State budget, the tax industry strongly recommends that all citizens, particularly those engaged in production, business and other activities, who have taxable income, download and install this software on their mobile devices. — VNS