Vietnam Streamlines Exit Suspension Procedures for Tax Debtors

One of the most notable changes is the introduction of clear monetary thresholds and overdue periods for applying temporary exit suspension measures against taxpayers with outstanding tax debts.

The decree also strengthens procedural safeguards by requiring tax authorities to issue an electronic notification at least 30 days before imposing an exit suspension.

New mechanism addresses payment data delays

The decree also introduces a safeguard for taxpayers whose tax payments have been made but have not yet been reflected in the tax authority’s electronic system:

• The tax authority that directly manages the taxpayer is responsible for issuing, extending, and revoking exit suspension notices.
• Where payment information has not been updated, taxpayers may submit electronic evidence of payment through the tax administration system. The tax authority will then verify the information, update its records and, where the relevant conditions have been met, issue the notice lifting the exit suspension.
• Where a taxpayer is transferred to another tax authority, the new managing tax authority will assume such authority.

The new procedure is intended to reduce the impact of delays caused by data synchronisation between government systems, particularly where taxpayers have already fulfilled their tax obligations.

Exit suspension may be lifted before all tax debts are settled

Another notable change is the introduction of more flexible conditions for lifting exit suspension measures.

Under Decree 252, tax authorities may lift an exit suspension where the remaining tax debt falls below the statutory thresholds:

• VND 50 million for individuals and household businesses; and
• VND 500 million for enterprises, cooperatives, and cooperative unions.

Taxpayers may also submit electronic proof of payment where the tax payment has not yet been updated in the tax authority’s system.

For taxpayers no longer operating at their registered address, exit restrictions may also be lifted once they restore their tax identification number (TIN), complete the required tax filings, reduce outstanding tax debt below the applicable threshold, or complete procedures to terminate the TIN in accordance with regulations.

The revised approach provides taxpayers with greater flexibility to resolve compliance issues while reducing unnecessary restrictions once the majority of outstanding obligations have been addressed.

Additional time to remedy compliance issues

The decree largely retains the exit suspension framework introduced under Decree No. 49/2025/ND-CP but introduces several amendments to align it with the Law on Tax Administration 2025.

Key changes include:

• Expanding the scope of affected persons to include beneficial owners of enterprises, consistent with the Enterprise Law;
• Requiring 120 days after a taxpayer is declared inactive at its registered address before exit suspension measures may be imposed; and
• Limiting the measure to specified individuals, including household business owners, individual business operators, beneficial owners and legal representatives of enterprises, cooperatives and cooperative unions.

The introduction of the 120-day grace period gives taxpayers additional time to restore their TIN, complete deregistration procedures or otherwise rectify their compliance status before travel restrictions are imposed.

Business implications

The amendments reflect a shift towards a more balanced enforcement approach by combining stricter tax administration with greater procedural safeguards for compliant taxpayers.

Businesses should consider:

• Monitoring outstanding tax liabilities to avoid triggering exit suspension thresholds;
• Ensuring tax payments are made sufficiently in advance of international travel by company representatives;
• Retaining proof of tax payments in case of delays in system updates; and
• Promptly addressing inactive tax registration status or outstanding TIN procedures to avoid enforcement measures.

For foreign-invested enterprises, the revised rules also reinforce the importance of maintaining accurate tax registration records and monitoring the tax compliance status of legal representatives and beneficial owners, particularly where cross-border travel forms part of normal business operations.

See also: Vietnam’s New Tax Decrees Introduce an Integrated Compliance Framework