Collected 1,844 billion in taxes from 2,873 people whose exit was suspended due to tax debt.

The General Department of Taxation will study and report to competent authorities on the tax debt threshold appropriate to each tax debtor in applying the measure of temporary suspension of exit.

Recently, many businesses and individuals have been confused by the news of temporary suspension of exit from the country due to tax debts. This has caused a lot of disruption and affected the business activities as well as travel plans of many people. So, what is the legal basis for allowing the tax authorities to take this drastic measure?

Regarding the legal basis for implementing the temporary suspension of exit, the tax authority is basing on the legal provisions in 4 legal documents. Specifically: Article 36 of the Law on Exit and Entry of Vietnamese Citizens; Article 28 of the Law on Entry, Exit, Transit and Residence of Foreigners in Vietnam; Clause 12, Article 3; Article 66; Clause 7, Article 124 of the Law on Tax Administration and Clause 2, Clause 3, Article 21 of Decree No. 126 of the Government guiding the Law on Tax Administration.

Tax authorities have collected VND1,844 billion from 2,873 taxpayers whose exit from the country is temporarily suspended. Photo: TCTC

Accordingly, cases of temporary suspension of exit include: Individuals, individuals who are legal representatives of taxpayers who are enterprises that are subject to forced enforcement of administrative decisions on tax management and have not fulfilled their tax payment obligations; Vietnamese people leaving the country to settle abroad, Vietnamese people settling abroad, foreigners who have not fulfilled their tax payment obligations before leaving Vietnam.

In fact, many individuals, upon learning about tax debt collection measures of tax authorities, especially regulations on temporary suspension of exit from the country, through the mass media, voluntarily paid tax debts from many years before.

Many businesses have focused on arranging financial resources to fulfill their tax obligations in order to have their exit suspension lifted. From the end of 2023 to September 2024, the tax authority has collected VND 1,844 billion from 2,873 taxpayers who are currently under suspension. Departure suspension (That does not include the tax debt collected by the tax authority due to the taxpayer's proactive payment when the exit is not yet suspended).

" With 1,844 billion VND collected, it shows the effectiveness in implementing legal regulations in tax debt management that the tax sector has deployed (the collected amount is greater than the total revenue of the 2 localities with low revenue) ", said the representative. General Department of Taxation emphasize.

When a taxpayer evades tax obligations, the tax authority will take steps to send a notice to the taxpayer about the tax debt and request fulfillment of the obligation. If the taxpayer still fails to fulfill the obligation, the tax authority will take other coercive measures such as seizing assets and temporarily holding documents. If the above measures are ineffective, the tax authority will request the competent authority to temporarily suspend the tax debtor's exit from the country.

Departure suspension due to tax arrears is a necessary measure to ensure social justice and encourage taxpayers to fulfill their obligations. However, people need to understand the legal regulations to avoid unfortunate situations. To avoid being suspended from exit, each person and business must be aware of the law and pay taxes fully and on time. At the same time, it is necessary to proactively update information on tax-related regulations to promptly resolve arising issues.

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