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Vietnam Streamlines Exit Suspension Procedures for Tax Debtors
Vietnam has revised its rules on temporary exit suspension for taxpayers with outstanding tax liabilities under Decree No. 252/2026/ND-CP, effective 1 July 2026. The new provisions introduce faster procedures for lifting travel restrictions, greater flexibility for taxpayers resolving tax debts.
Effective 1 July 2026, Vietnam’s Decree 252/2026/ND-CP (“Decree 252”) accelerates the removal of exit suspensions and permits restrictions to be lifted when remaining tax debts fall below VND 50 million for individuals and household businesses or VND 500 million for eligible organizations. The decree also allows taxpayers to submit payment evidence electronically and introduces a 120-day grace period for certain compliance violations.
The changes form part of the Government’s broader efforts to modernise tax administration while ensuring taxpayers have sufficient opportunity to rectify compliance issues before more restrictive enforcement measures are applied.
Faster removal of exit suspensions
Under the new rules, tax authorities must issue a notice lifting an exit suspension immediately once a taxpayer satisfies the prescribed conditions. The notice is transmitted electronically through the tax administration system to the immigration authority, which then removes the travel restriction in accordance with the regulations.
Previously, tax authorities had up to 24 working hours after a taxpayer fulfilled their tax obligations to issue the cancellation notice.
The shorter processing time is expected to reduce disruptions for business travellers and individuals requiring urgent international travel after settling outstanding tax liabilities.
New mechanism addresses payment data delays
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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.
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.
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 the previous rules, taxpayers generally had to settle all outstanding tax liabilities before travel restrictions could be removed.
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.
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
Managing tax in Vietnam is critical for FDI companies to stay compliant with local regulations, GST requirements, and global standards such as IFRS, navigate complex filings, and apply correct tax treatments. A well-structured tax process helps to avoid penalties and stay 100% compliant.
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Vietnam Briefing is one of five regional publications under the Asia Briefing brand. It is supported by Dezan Shira & Associates, a pan-Asia, multi-disciplinary professional services firm that assists foreign investors throughout Asia, including through offices in Hanoi, Ho Chi Minh City, and Da Nang in Vietnam. Dezan Shira & Associates also maintains offices or has alliance partners assisting foreign investors in China, Hong Kong SAR, Indonesia, Singapore, Malaysia, Mongolia, Dubai (UAE), Japan, South Korea, Nepal, The Philippines, Sri Lanka, Thailand, Italy, Germany, Bangladesh, Australia, United States, and United Kingdom and Ireland.
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