New Threshold for Tax Debt Travel Ban

Vietnam is considering a new threshold for individuals with tax debts that could prevent them from leaving the country. The proposed amount is four times higher than an earlier suggestion this month, maintaining the overdue period at 120 days.

Impact on Tax Debtors

Hoang Thai Son, director of the legal department at the Ministry of Finance, reported at a recent meeting that around 81,000 people across the country have VND50 million or more in tax debts. The proposed threshold aligns with levels enforced in several other countries.

Enforcement and International Comparisons

Under the proposal, individuals facing travel bans would be notified electronically by tax authorities or listed on the authorities' official website. If the debt remains unpaid 30 days after a warning, customs authorities will be informed to enforce the ban. This measure is similar to practices in countries like China, Malaysia, and the U.S., which also impose travel bans on individuals with substantial and long overdue tax debts.