Decree 126/2020/ND-CP guiding the Law on Tax Administration officially came into effect on December 5, 2020.
This includes a new provision regarding the postponement or prohibition of departure from the country for the legal representative of a business when they have not yet fulfilled their tax obligations or paid outstanding taxes.
Regulations regarding the fulfillment of tax obligations in cases of departure are stipulated in Article 21 of Decree 126/2020/ND-CP guiding the implementation of the Law on Tax Administration.
Article 21: Fulfilling tax obligations in case of departure.
1. Cases of temporary travel ban
a) Individuals, or individuals acting as legal representatives of taxpayers that are businesses, who are subject to enforcement of administrative decisions regarding tax management and have not yet fulfilled their tax obligations.
b) Vietnamese citizens who have emigrated to settle abroad and have not yet fulfilled their tax obligations.
c) Vietnamese citizens residing abroad who have not fulfilled their tax obligations before leaving the country.
d) Foreign nationals who have not fulfilled their tax obligations before departing Vietnam.
2. Authority to decide on temporary travel ban, extension of temporary travel ban, and cancellation of temporary travel ban.
a) The head of the tax administration agency directly managing the taxpayer has the authority to decide, based on the actual situation and tax administration work in the area, on the selection of cases for temporary suspension of exit from the country for the cases specified in Clause 1 of this Article.
b) The person authorized to decide on the temporary suspension of exit from the country also has the authority to decide on extending the temporary suspension of exit from the country and to cancel the temporary suspension of exit from the country.
c) The authority that decided to temporarily suspend exit from the country is responsible for revoking the temporary suspension of exit from the country no later than 24 working hours from the time the taxpayer fulfills their tax payment obligations.
3. Procedures for implementing temporary travel bans, extending temporary travel bans, and canceling temporary travel bans.
a) After reviewing, comparing, and accurately determining the taxpayer's tax obligations, the tax authority directly managing the taxpayer shall compile a list of individuals, including individuals who are legal representatives of enterprises, who are subject to temporary travel bans and prepare a document according to Form No. 01/XC in Appendix III issued with this Decree, sending it to the immigration management agency and simultaneously notifying the taxpayer to fulfill their tax obligations before departure.
b) On the same day that the tax authority receives the temporary travel ban notice, the immigration authority is responsible for implementing the travel ban as prescribed and publishing it on the immigration authority's website.
c) If the taxpayer has fulfilled their tax obligations, within 24 working hours the tax authority shall issue a document canceling the temporary travel ban according to Form No. 02/XC in Appendix III attached to this Decree and send it to the immigration authority to cancel the temporary travel ban as prescribed.
Before the expiration of the 30-day temporary travel ban, if the taxpayer has not fulfilled their tax obligations, the tax authority shall send a written extension of the temporary travel ban, using Form No. 02/XC in Appendix III issued with this Decree, to the immigration management agency, and simultaneously notify the taxpayer.
d) Documents for temporary travel ban, extension of temporary travel ban, and cancellation of temporary travel ban shall be sent by post or electronically if conditions for electronic transactions are met and published on the tax authority's website. If a document sent to the taxpayer by post is returned and the document has been published on the tax authority's website, it shall be considered as having been sent.