As overseas travel rebounds and more people fly abroad for tourism, business, or education planning, tax-related exit restrictions are drawing renewed attention. In some cases, travelers only discover the problem at immigration, when it is already too late to board their flight.
So how does this regulation work, who does it apply to, and how can travelers avoid unpleasant surprises?
What is the rule on exit bans linked to tax debt?
Under Vietnam’s Law on Exit and Entry of Vietnamese Citizens and tax administration regulations, authorities are allowed to temporarily suspend a person’s right to leave the country if they have failed to fulfill certain tax obligations.
The measure is designed to prevent individuals with significant unpaid taxes from leaving Vietnam before settling their liabilities, particularly in cases where enforcement measures are already in place or where there is a risk of evasion.
Who can be affected by tax-related exit bans?
The regulation applies to a broad range of individuals, not just business owners in the traditional sense.
Those who may face temporary exit bans include business individuals, household business owners, beneficial owners of enterprises, and legal representatives of companies or cooperatives who are subject to tax enforcement actions. People whose businesses have ceased operations at their registered addresses but still owe taxes may also be affected.
In addition, Vietnamese citizens planning to permanently reside abroad, overseas Vietnamese, and foreign nationals can be barred from leaving Vietnam if they have not completed their tax obligations before departure.
In certain cases, individuals undergoing tax inspections or audits may also be temporarily restricted from travel if authorities believe immediate preventive measures are necessary.
How much unpaid tax can trigger an exit restriction?
Vietnamese regulations set specific thresholds for applying exit bans.
For business individuals and household business owners under tax enforcement, unpaid tax debts of VND50 million (US$1,923) or more, overdue for more than 120 days, may lead to travel restrictions. For legal representatives of enterprises or cooperatives, the threshold is higher, at VND500 million ($19,227), also overdue for more than 120 days.
For individuals or business representatives who are no longer operating at their registered addresses, exit bans may be imposed 30 days after tax authorities issue a notice if the debt remains unpaid. Those leaving Vietnam to settle abroad may face restrictions regardless of the amount if tax obligations have not been fulfilled.
How can people check their status before traveling?
Vietnam’s tax authority provides an online tool that allows individuals to check whether they are subject to exit restrictions due to unpaid taxes.
By accessing the General Department of Taxation’s website and searching the section that publicly discloses tax enforcement and exit restriction notices, users can check their status using their personal tax identification number and identification details.
If a restriction is listed, the only way to lift it is to fully settle the outstanding tax debt before departure.
Why travelers should pay attention
Tax-related exit bans are not limited to major corporations or high-profile cases. Even unresolved issues from past business activities or household businesses can trigger restrictions, potentially disrupting travel plans at the last minute.
For travelers planning overseas trips, checking tax status in advance has become an essential step, one that could prevent being unexpectedly turned away at the immigration counter.
Comments are closed.