LEGAL REGULATIONS ON EXIT SUSPENSION DUE TO TAX DEBTS IN VIETNAM (2026)
Exit suspension due to tax debt is one of the measures applied by state authorities to ensure taxpayers fulfill their financial obligations to the state budget. In the context of increasingly stringent tax management regulations, many business owners, entrepreneurs, and legal representatives of businesses are particularly interested in the conditions for applying this measure. So, what is an exit suspension due to tax debt, what is the threshold for applying the suspension, and how to lift the suspension? This following article will clarify the regulations applicable in 2026.
1. What is exit suspension due to tax debt?
Exit suspension due to tax debt is an administrative measure applied to taxpayers in legally defined cases to ensure the fulfillment of their tax obligations to the State. According to the Law on Tax Administration 2019 and Decree No. 49/2025/NĐ-CP regulating the threshold for applying exit suspension (“Decree 49/2025/NĐ-CP”), tax authorities and immigration authorities can cooperate to apply exit suspension to individuals who have not fulfilled their tax obligations. This measure aims to limit the situation where taxpayers leave the country while still having large or long-standing tax debts, making it difficult for state agencies to manage and recover tax debts.
Individuals subject to a temporary travel ban not only include those owing taxes, but also the legal representatives of businesses with outstanding tax debts, as stipulated in Article 2 of Decree 49/2025/ND-CP.
2. The debt threshold for applying exit suspension in 2026
From 2026, the threshold of tax debt for applying the exit suspension will be determined under Decree 49/2025/NĐ-CP. Accordingly, not all cases of tax debt will be subject to exit suspension; certain conditions regarding the amount owed and the period of overdue payment must be met.
For individual business owners and household business owners subject to enforcement of administrative decisions on tax management, exit suspension may be applied when the outstanding tax debt is VND 50,000,000 or more and the debt has been overdue for more than 120 days (Clause 1, Article 3 of Decree 49/2025/NĐ-CP). This regulation aims to ensure that individual business owners fulfill their tax obligations before undertaking overseas trips.
For legal representatives of enterprises, cooperatives, or cooperative unions, an exit suspension decision may be applied if the entity they represent has tax debts of VND 500,000,000 or more and these debts are overdue for more than 120 days (Clause 2, Article 3 of Decree 49/2025/NĐ-CP). In that case, the legal representative will be subject to exit suspension to ensure the fulfillment of the enterprise’s tax obligations.
Furthermore, for individual business owners, household business owners, or individuals who are the legal representatives of enterprises, cooperatives, or cooperative unions that are no longer operating at the address registered with the tax authorities, exit suspension may be applied if they have outstanding tax debts that are overdue and more than 30 days have passed since the tax authorities notified them of applying exit suspension, but they have not fulfilled their tax obligations (Clause 3, Article 3 of Decree 49/2025/NĐ-CP). In this case, the conditions for application are primarily based on the fact that they are no longer operating at the registered address and the delay in fulfilling their tax obligations after the notification from the tax authorities.
Furthermore, foreigners or Vietnamese citizens wishing to leave Vietnam to settle abroad must fulfill all their tax obligations as prescribed by law before departing. If they have not, the competent authority may apply exit suspension regardless of the amount of tax owed (Clause 4, Article 3 of Decree 49/2025/NĐ-CP).
It should be noted that, according to Article 4 of Decree 49/2025/NĐ-CP, before applying the exit suspension, the tax authority directly managing the taxpayer will send a notice about the application of exit suspension electronically or publicly on the tax authority’s website. If the taxpayer still has not fulfilled their tax obligations after 30 days from the date of sending the notice, the tax authority will issue a decision on exit suspension to the immigration management authorities for implementation.
3. How to lift the exit suspension?
Being temporarily banned from leaving the country can significantly impact work, business operations, or personal plans. Taxpayers can completely eliminate this risk if they meet the conditions stipulated by law.
The most common and effective solution is to fulfill all tax obligations. Taxpayers need to pay all outstanding taxes, including principal, late payment penalties, and other payable amounts as required. After confirming that the taxpayer has fulfilled their financial obligations, the tax authorities will send a notification to the immigration authorities to lift the exit suspension.
In some cases, tax debt may arise from errors in the tax declaration or management process. When taxpayers discover inaccurate information, they should proactively work with the directly managing tax authority to verify and cross-check the data and carry out the necessary correction procedures. Promptly addressing discrepancies in tax obligations will help avoid unnecessary impacts on exit rights.
Furthermore, individual business owners, household business owners, legal representatives of enterprises, and foreigners operating in Vietnam should check their tax obligations before undertaking overseas trips. Early checks allow taxpayers to have sufficient time to settle outstanding debts, complete necessary documentation, and reduce the risk of being denied exit at border crossings.
Exit suspension due to tax debt serves as an important enforcement measure to ensure compliance with tax obligations. Under the regulations applicable in 2026, individuals with tax debts of VND 50,000,000 or more, or legal representatives of businesses that owe tax debts of VND 500,000,000 or more that are overdue for more than 120 days, may be subject to exit suspension. Therefore, individuals and businesses need to regularly monitor their tax obligations and proactively address outstanding tax debts to avoid impacting travel plans, business operations, and international transactions.
