Ministry of Finance proposes tax debt of 10 million VND or more to be delayed from leaving the country

(NLDO) - The Ministry of Finance has just proposed the threshold and time limit for tax debt to apply the measure of temporary suspension of exit.

The Ministry of Finance is seeking comments on the draft Decree detailing Clause 9, Article 6 of the Law amending and supplementing a number of articles of 7 laws. This includes the content on the tax debt threshold and the tax debt period for which exit suspension measures will be applied.

This is an issue that has received public attention recently, and at the 8th session of the National Assembly, some National Assembly deputies also proposed that it is necessary to regulate the tax debt threshold to temporarily suspend exit from the country.

People do tax procedures at the Tax Department of Phu Nhuan District, Ho Chi Minh City. Photo: HOANG TRIEU

According to the proposal of the Ministry of Finance, business individuals and business household owners with overdue tax debts of VND10 million or more for more than 120 days will have their exit temporarily suspended. For enterprises, cooperatives and cooperative unions that are forced to enforce administrative decisions on tax management with overdue tax debts of VND100 million or more for more than 120 days, their legal representatives will have their exit temporarily suspended.

The drafting agency also proposed to immediately suspend exit from the country for tax debtors who are individuals, business owners, legal representatives of enterprises, cooperatives, and cooperative unions that are no longer operating at the registered address.

The tax authority will notify the taxpayer of the temporary suspension of exit via electronic means. In case the notification cannot be sent electronically or the tax debtor is no longer operating at the registered address, a notice will be posted on the tax authority's website.

After 30 days from the date of notification to the taxpayer of the application of temporary exit suspension measures, if the taxpayer has not fulfilled his tax payment obligations, the tax authority shall send a document on temporary exit suspension to the immigration authority for implementation.

From the end of 2023, the tax sector will increase the application of special exit suspension measures for cases with large tax debts, about 15,602 billion VND. Recently, the legal representatives of a number of large enterprises - such as Bamboo Airways, Trung Nam Group... - have also had their exit suspended due to tax debts.

Regarding the temporary suspension of exit due to tax debts, many opinions believe that this regulation is necessary. However, it needs to be amended and supplemented to be more suitable, such as regulating the specific tax debt threshold to which this measure is applied.

At the 8th session, Mr. Le Quang Manh, Chairman of the National Assembly's Finance and Budget Committee, said that temporary suspension of exit is only a small measure and not the strongest measure to handle violations. Therefore, this committee proposed that the Government add a tax debt threshold to limit the scope of application of the exit ban measure.

Previously, the General Department of Taxation (Ministry of Finance) also affirmed that the temporary suspension of exit for individuals and legal entities with tax debts is carried out by tax authorities according to very strict procedures, in accordance with the provisions of law. Not all individuals with tax debts are temporarily suspended from exit. This only applies to a few subjects, including the legal representative of the enterprise.

Source: https://nld.com.vn/bo-tai-chinh-de-xuat-no-thue-tu-10-trieu-dong-tro-len-bi-hoan-xuat-canh-196241207142033486.htm