Ministry of Finance proposes new proposal: Individuals with tax debt of 50 million VND or more will have their exit suspended

This is new information provided by the Director of the Legal Department, Ministry of Finance , Hoang Thai Son, in response to Tuoi Tre Online's question about the tax debt threshold that results in temporary suspension of exit from the country.

Director of the Legal Department, Ministry of Finance Hoang Thai Son - Photo: GIA HAN

On the morning of December 20, the Office of the President announced the President's order promulgating nine laws passed by the 8th session of the 15th National Assembly.

These include the Law amending and supplementing a number of articles of the Securities Law; the Accounting Law; the Independent Audit Law; the State Budget Law; the Law on Management and Use of Public Assets; the Tax Management Law; the Personal Income Tax Law; the National Reserve Law; the Law on Handling of Administrative Violations (abbreviated as 1 law amending 9 laws in the financial sector).

At the press conference, Tuoi Tre Online raised the issue that the law amending the Law on Tax Administration assigns the Government to regulate the amount of tax debt and the period of tax debt subject to exit suspension measures.

To implement the law, the Ministry of Finance has proposed that from January 1, 2025, individuals and business owners with overdue tax debts of VND10 million or more for more than 120 days will have their exit from the country temporarily suspended.

Reporters asked the leaders of the Ministry of Finance to explain the reason for this level, especially when many experts and opinions said that this level is unfounded and could lead to many people being temporarily suspended from leaving the country.

Scene of the press conference announcing the law - Photo: GIA HAN

Raising tax debt threshold, debt period is suspended for exit

Responding to this content, Mr. Hoang Thai Son, Director of the Legal Department, Ministry of Finance, said that according to the current law before the new law, the 90-day overdue period for individuals and business households with tax debts had to go through the steps of enforcement by the tax authority to reach the step of postponing exit.

Specifically, there is a document urging tax payment. Along with that, measures such as deducting money from the account are applied. Before enforcing, households and individuals are notified and then enforcing and banning them from leaving the country.

Based on the actual situation, according to Mr. Son, the Ministry of Finance proposed that the National Assembly pass the new law to assign this content to the Government for guidance.

Currently, the draft decree is being developed by the Ministry of Finance and is being prepared to be submitted to the Government to propose a temporary exit suspension threshold for individuals and business households with tax debts of over 50 million, and to increase it from 90 to 120 days to be consistent.

Regarding impact assessment, Mr. Son informed that currently there are about 81,000 cases of business households and individuals owing over 50 million VND in taxes.

"We think that with the level being proposed to the Government, with the quantity and according to surveyed international experience, the level of 50 million VND is appropriate.

The number of impacts and enforcement and exit bans will be increased from 90 to 120 days. At the same time, within those 120 days, the steps prescribed by law must still be followed before enforcement can be carried out," said Mr. Son.

Mr. Son emphasized that this is one of the very effective measures in tax management to ensure that people and individuals properly exercise their rights related to taxes and ensure tax payment to the State.

Previously, in the draft in early December 2024, the Ministry of Finance proposed that individuals with tax debts of 120 days or more of 10 million VND will have their exit suspended; businesses with tax debts of 120 days or more of 100 million VND will have this measure applied to their legal representative.

Thus, the new proposed level informed by Mr. Son has increased 5 times compared to before.

Source: https://tuoitre.vn/bo-tai-chinh-de-xuat-moi-ca-nhan-no-thue-tu-50-trieu-dong-bi-tam-hoan-xuat-canh-20241220102044583.htm