GMS Alert - An increase in temporary exit bans for individuals with a PIT debt

Following the Tax administration Law No. 38/2019/QH14 issued by The National Assembly and the decision No. 1129/QD-TCT dated 20 July 2022 issued by the General Department of Taxation on tax debt management, the local tax authorities have become more aggressive in collecting tax debts.

Recently there has been an increasing number of expatriates receiving tax debt notices from local tax authorities. Where the tax debt remains unsettled or the taxpayers are unresponsive to the third notice, the tax authority will issue temporary exit bans and inform the Immigration authority accordingly for their record.

OUR OBSERVATION ON THE SITUATION IN PRACTICE

WHY THIS MATTERS

• Puts the employees at risk of being non-compliant with Vietnam law and exposure to be banned from exiting Vietnam
• Penalty and interest on the late tax payments and non-compliance
• Risk of deportation for the individuals and difficulties when re-applying for entry for the next trip, applicable to the repatriated employees.

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