Proposal to temporarily suspend exit from the country for business people with tax debts of over 50 million VND

(Dan Tri) - Individuals and businesses with tax debts of over 50 million within 120 days may be temporarily suspended from leaving the country, according to the proposal of the Ministry of Finance. Before enforcing temporary suspension of exit, the tax authority will send a notice.

This is one of the notable contents that can be applied when the Law amending and supplementing a number of articles of 9 laws related to finance, including the Law on Tax Administration, comes into effect.

Reporting on the new points of the Law at a press conference on the morning of December 20 organized by the Office of the President, Deputy Minister of Finance Le Tan Can said that the Law, which was just passed by the National Assembly at its 8th session, amended and supplemented 14 articles of the Law on Tax Administration.

Deputy Minister of Finance Le Tan Can (Photo: Hong Phong).

One of the amended and supplemented contents is the regulation on the authority to decide on tax refund; the amount of interest to be paid, completion of tax payment obligations in case of exit; measures to enforce administrative decisions on tax management; rules for determining the time to calculate late payment fees.

According to the provisions of the Law, business individuals, business household owners, legal representatives of enterprises, cooperatives, and cooperative unions who are subject to compulsory enforcement of administrative decisions on tax management must fulfill their tax payment obligations before leaving Vietnam.

"In case of failure to fulfill tax payment obligations with tax arrears and debt periods within the threshold prescribed by the Government, exit from the country shall be temporarily suspended according to the provisions of law on exit and entry," the Law clearly states.

Also according to the provisions of the law, the tax authority will notify the taxpayer in advance about the application of the measure of temporary suspension of exit.

Providing more information about regulations related to tax debt thresholds and the debt period that will result in temporary suspension of exit from the country, Director of the Legal Department (Ministry of Finance) Hoang Thai Son said that according to current regulations, individuals and households with tax debt of 90 days will be banned from exiting the country.

Before applying the temporary exit suspension measure, according to Mr. Son, the tax authority will issue a document urging tax payment and apply measures such as deducting money from the account. The tax authority will also notify business households and individuals before enforcing the temporary exit suspension.

Panorama of the press conference announcing the laws at the Office of the President (Photo: Hong Phong).

But based on the actual situation and the Law just passed by the National Assembly, Mr. Son said that in the draft decree prepared to be submitted to the Government, the Ministry of Finance proposed the tax debt threshold to be over 50 million VND and increase the tax debt period from 90 to 120 days. During the 120-day period, the tax authority will take the steps as prescribed by law before proceeding with enforcement.

Compared to the previous draft decree, the tax debt threshold that the Ministry of Finance proposed to apply to temporarily suspend exit for individuals and business households has increased 5 times (previously it was 10 million VND).

"Currently, the number of individuals and business households owing over 50 million VND in taxes is about 81,000 households and individuals, so the level being proposed to the Government is appropriate," said Mr. Son.

According to him, this is one of the very effective measures to ensure that individuals and business households fulfill their tax obligations to the State.

Source: https://dantri.com.vn/xa-hoi/de-xuat-tam-hoan-xuat-canh-voi-nguoi-kinh-doanh-no-thue-tren-50-trieu-dong-20241220103632760.htm