Departure suspension due to tax arrears is a strong enforcement measure of the tax authorities. According to VietnamnetIn the first half of 2025 alone, 61,492 notices of temporary suspension of exit were issued, related to tax arrears of more than VND 83,028 billion. At the same time, Vietnam Financial Times said that this measure has helped recover nearly VND5,000 billion from 7,309 taxpayers who were restricted from leaving the country. These figures show the deterrent effect and practical effectiveness of temporary suspension of exit in tax management.
See more articles at: Corporate Income Tax Overview
Legal basis for temporary suspension of exit due to tax debt
To ensure that the application of the measure of temporary suspension of exit due to tax arrears is in accordance with regulations, tax authorities always rely on clear legal bases. Documents from the Law on Tax Administration, guiding decrees to detailed regulations all specifically stipulate debt thresholds, time limits and applicable subjects. The table below will systematize the most important legal bases:
| Legal basis | Main content | Note |
| Tax Administration Law No. 38/2019/QH14 | Regulations on cases where taxpayers fail to fulfill their obligations will be subject to enforcement measures, including temporary suspension of exit due to tax debt for individuals or legal representatives of enterprises. | The highest legal basis for tax administration. |
| Decree 49/2025/ND-CP | The tax debt threshold of VND500 million for businesses is the basis for temporary suspension of exit. | Sub-law documents specifying debt levels. |
| Document guiding the implementation of the Law on Tax Administration | Clearly define the 90-day period of unpaid tax debt as the threshold for tax authorities to apply enforcement. | Ensure enforcement in management. |
Cases of temporary suspension of exit due to tax debt
Not all tax debts lead to an exit ban. Only those who meet the statutory conditions are subject to this measure. The conditions include the amount of the debt, the length of the debt, the legal status of the individual or business, and the risk of tax evasion. Details are summarized in the table below:
Individuals with tax debts
Here are some cases involving individuals owing taxes:
- Individuals directly owe tax, late payment penalties or late payment fees related to tax obligations.
- Tax debtors of 50 million VND or more and have been overdue for 90 days from the due date without payment.
For example, an individual doing online business is charged with value added tax and personal income tax of 120 million VND but if he fails to pay for more than 3 months, he may be temporarily suspended from leaving the country.
Legal representative of tax-indebted enterprise
In case the enterprise owes tax, the legal responsibility is determined to belong to the legal representative. Therefore, this representative may be subject to temporary suspension of exit due to tax debt to ensure that the tax payment obligation is fully performed.
- Applicable to directors, general directors, private business owners or other legal representatives.
- Enterprises with tax debt of 500 million VND or more and overdue for 90 days.
For example, a construction company owes 2 billion VND in taxes, has been notified many times but has not paid, the company director may be temporarily suspended from leaving the country.
Enterprises are dissolved, merged, or bankrupt but have not fulfilled their tax obligations.
In case a business has filed for dissolution or bankruptcy but still owes taxes, the legal representative may still be temporarily suspended from leaving the country to ensure full payment of tax obligations.
In case of signs of absconding or intentionally evading tax obligations
Tax authorities have the right to apply temporary suspension of exit even before 90 days have elapsed if they detect signs of individuals or legal representatives of enterprises dissipating assets or leaving Vietnam to evade tax obligations.
Other debts related to tax obligations
Not only tax money, but also administrative fines on tax, late payment fees, or other revenues of the State budget managed by tax authorities can also be the basis for applying temporary suspension of exit.
| Applicable objects | Tax debt threshold | Debt term | Legal basis | Notes / Examples |
| Individual | From 50 million VND or more | More than 90 days from the due date | Tax Administration Law 38/2019, Decree 49/2025/ND-CP | Business individuals owe 120 million VND for more than 3 months → have their exit suspended |
| Legal representative of the enterprise | From 500 million VND or more | Over 90 days | Tax Administration Law 38/2019, Decree 49/2025/ND-CP | Construction company director owes 2 billion VND → restricted from leaving the country |
| Enterprises that are dissolved, merged, or bankrupt and still owe taxes | Any debt amount | After filing for dissolution/bankruptcy | Law on Tax Administration | Ensure tax obligations are paid before the legal entity is terminated |
| In case of signs of escape | No threshold limit | There are signs of asset disposal/leaving Vietnam to evade taxes | Law on Tax Administration, Circular on guidance | Tax authorities may apply even if the 90 days have not yet elapsed. |
| Other debt related to tax obligations | No threshold limit | According to the time limit specified for each item | Law on Tax Administration | Including: administrative fines on taxes, late payment fees, other fees managed by the State budget |
Tax Department's response to petitions
During the implementation process, a number of businesses submitted petitions regarding temporary suspension of exit due to tax arrears. The Tax Department responded in detail to the following issues:
Are businesses established before December 15, 2020 subject to measures?
Many businesses have proposed that businesses established before December 15, 2020, should not be subject to temporary suspension of exit due to tax arrears, because of the legal principle of "non-retroactivity".
The Tax Department explains: The Tax Administration Law 38/2019/QH14 and its amendment 56/2024/QH15 apply to all taxpayers with overdue tax debts of 90 days, regardless of the time of establishment. Therefore, any enterprise that has not fulfilled its tax obligations is subject to temporary suspension of exit due to tax arrears.
Calculate tax debt to apply measures
Some recommendations suggest that only the original tax amount should be the basis for issuing a temporary suspension of exit due to tax arrears, not including fines or fees.
The Tax Department clarifies: according to the Law on Tax Administration, “tax arrears” include both tax arrears and other revenues belonging to the State budget. Taxpayers who have this amount overdue for 90 days will be subject to enforcement, including temporary suspension of exit due to tax arrears.
This means that when tax authorities determine the measure of temporary suspension of exit due to tax arrears, they will base it on the total amount of debt, including original tax, fines and other revenues related to the state budget.
Minimum tax debt threshold for application of measures
According to Decree 49/2025/ND-CP (effective from February 28, 2025), the Tax Department has issued the minimum tax debt threshold applicable to businesses:
- For businesses: from 500 million VND or more.
- For individuals: the minimum debt level is lower, depending on the specific regulations of the tax authorities.
This threshold is established based on the industry's tax management database, referring to international practices and has been widely consulted before being issued. This ensures fairness and at the same time improves the efficiency of debt collection before taxpayers leave the country.
Order of application of measures to large and small enterprises
Some recommendations suggest applying temporary suspension of exit due to tax debt first to corporations and large enterprises, then to small and micro enterprises.
The Tax Department said: Decree 49/2025/ND-CP stipulates temporary suspension of exit due to tax arrears on the principle of fairness. Any enterprise with tax arrears that falls within the scope of the Decree can be subject to the measure, regardless of size.
This helps avoid favoring large businesses or ignoring small businesses, ensuring fairness in tax debt collection.
Impact of temporary suspension of exit due to tax debt
The application of temporary suspension of exit due to tax arrears has a significant impact on:
- Businesses: Hinder international business trips, contract signing or market expansion.
- Personal: Affects business trips, study, and travel abroad.
- Tax management: Helps tax authorities improve debt collection efficiency and ensure state budget revenue.
In fact, applying this measure is also a motivation for businesses and individuals to fully fulfill their tax obligations, contributing to building a fair and transparent business environment.
Procedures for temporary suspension of exit due to tax arrears
To ensure transparency and legality, the Tax Department has prescribed the procedure for temporary suspension of exit due to tax debt as follows:
- Identify the subject: Individuals and businesses with tax debt overdue for 90 days.
- Tax debt notice: The tax authority sends a notice to the taxpayer about the amount owed and the payment deadline.
- Issuance of Decision on temporary suspension of exit: When a taxpayer fails to fulfill his/her obligations within the prescribed time, the tax authority will issue a decision on temporary suspension of exit due to tax debt.
- Enforcement measures: Immigration authorities will coordinate and prevent the exit of individuals or business representatives.
This process ensures that taxpayers are fully informed and have an opportunity to comply with their obligations before enforcement action is taken.
Measures to prevent temporary suspension of exit due to tax debt
To avoid being temporarily suspended from leaving the country due to tax debts, businesses and individuals can apply the following measures:
Proactive tax debt management
- Regularly monitor tax debt data through the General Department of Taxation's electronic portal.
- Check tax payment deadlines to avoid overdue debt of 90 days – the threshold for applying the measure.
Pay in full and on time
- Complete tax obligations before planning to leave the country.
- Pay both principal tax, fines and other state budget revenues to avoid tax authorities calculating debt.
Store valid documents
- Invoices, payment vouchers, and sales contracts help demonstrate tax obligations have been fulfilled.
- In case of dispute or doubt, the document will be important legal evidence.
Advice and support from tax authorities or experts
- Contact the Tax Department or use tax consulting services to ensure obligations are performed correctly, avoiding errors that cause temporary suspension of exit due to tax debt.
- These measures not only help prevent enforcement, but also enhance business reputation and facilitate international operations.
International practice and comparison of temporary suspension of exit due to tax arrears
To better understand how exit suspension due to tax arrears is applied, both domestically and internationally, we can look at the comparison table below. The table summarizes typical countries Vietnam, the US, China and Japan showing the measures that tax authorities apply to individuals and businesses with tax arrears.
At the same time, the table also highlights the applicable thresholds, differences and transparency in the implementation process. Thereby, taxpayers can compare the effectiveness and implementation of debt collection measures, thereby drawing their own management and risk prevention lessons.
| Nation | Practical application of measures related to tax debt | Highlights / Applicable Thresholds |
| Vietnam | Departure suspension due to tax debt applies to both individuals and businesses. | Tax debt threshold from 500 million VND or more for enterprises; transparent process, prior notification and right to appeal. |
| America | The IRS may impose a deportation ban on individuals with large tax debts. | Usually prioritize debt collection by other means before banning exit; not common for businesses. |
| China | Exit ban for individuals and business representatives with serious tax debts. | Debt thresholds are strictly regulated for each type of enterprise; similar to Vietnam in terms of fair application. |
| Japan | Exit suspension is rarely applied; bank account freezing and direct collection are mainly applied. | Priority measures for direct debt collection; restriction on exit ban application. |
Conclude
Departure suspension due to tax arrears is an important measure to help tax authorities ensure revenue for the state budget and improve the efficiency of tax debt management. Practice in Vietnam shows that this mechanism is implemented transparently, fairly and has specific thresholds, applicable to both large and small enterprises and individuals. International comparisons also show that Vietnam is applying this measure reasonably, balancing taxpayer rights and obligations to the state.
To avoid the risk of being suspended from exiting the country due to tax debts and to ensure optimal compliance with the law, businesses and individuals should proactively manage tax debts, make full payments, store valid documents and consult experts when necessary.
MAN – Master Accountant Network always accompany you in updating the latest tax policies, consulting tax management strategies and optimizing financial obligations. Contact MAN today for support, ensuring your business operates safely, transparently and is ready for any international exit plan.
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