The Ministry of Finance proposes to temporarily suspend exit from the country in cases where individuals and business owners have tax debts of VND50 million or more that have been overdue for more than 120 days.
A business store in Thanh Hoa . (Photo: Nguyen Nam/VNA)
The Ministry of Finance has just sent a document to the Ministry of Justice for appraisal of the draft Decree regulating the threshold for temporary suspension of exit from the country.
The Ministry of Finance proposes to temporarily suspend exit from the country in cases where individuals and business owners have tax debts of VND50 million or more and enterprises have tax debts of VND500 million or more that are overdue for more than 120 days.
The Ministry of Finance said that in order to avoid causing major impacts on the business environment, support taxpayers, nurture revenue sources while ensuring state budget revenue and tax management by tax authorities, the Ministry of Finance proposed to stipulate that the amount of overdue tax debt is 50 million VND or more for individuals.
According to the Ministry of Finance, this debt threshold refers to Malaysia's experience of about 2,000 USD, the US's experience of 40,000 USD/individual in cases of temporary suspension of exit, comparing the average income per capita of the US in 2023 of about 80,000 USD, the average income per capita in Vietnam of about 4,284 USD, so the threshold for individuals in Vietnam of about 2,100 USD (equivalent to 50 million VND) is appropriate.
The Ministry of Finance also referred to the experience of Taiwan (China), specifically regulating the debt threshold applicable to enterprises at 2 million NTD (1.57 billion VND), other countries do not regulate a specific threshold.
Therefore, for businesses, the Ministry of Finance proposes to apply a debt threshold of VND 500 million (10 times the amount of overdue tax debt applied to individuals).
Regarding the overdue debt threshold, the amount of tax debt overdue according to regulations is over 120 days, to ensure the collection of tax arrears, increase taxpayer compliance, avoid long-term arrears that are difficult to collect and ensure compliance on the tax management application so that the tax authority can implement it as soon as the Decree is issued.
The Ministry of Finance also proposed that the notification be made electronically or on the tax authority's website as soon as the taxpayer is subject to enforcement of an administrative decision on tax administration; and after 30 days from the date of notification, if the taxpayer has not fulfilled his tax payment obligation, the tax authority will issue a document to officially apply the temporary suspension of exit.
Thus, the total time of tax arrears overdue according to regulations will be subject to temporary exit suspension of over 120 days.
For taxpayers who are no longer operating at the registered business address but still owe taxes, and Vietnamese people leaving the country to settle abroad, Vietnamese people residing abroad and foreigners who have not yet fulfilled their tax payment obligations before leaving Vietnam, it is necessary to immediately apply the measure of temporarily suspending exit to recover tax debts to the state budget.
The document also clearly states that for business individuals and enterprises that have abandoned their business addresses, the tax authority will notify on the tax authority's website that it will apply the measure of temporary suspension of exit immediately after issuing a notice that the taxpayer is not operating at the registered address.
For Vietnamese people leaving the country to settle abroad, Vietnamese people settling abroad and foreigners who have not yet fulfilled their tax payment obligations before leaving Vietnam, the measure of temporary suspension of exit must be immediately applied at the time of completing exit procedures.
Therefore, as soon as there is information that the above individuals are preparing to leave the country, the tax authority directly managing the taxpayer must send a notice of temporary suspension of exit to the taxpayer by electronic means to these individuals.
In case the notice cannot be sent electronically, the tax authority shall notify on the tax authority's website.
The Ministry of Finance has proposed a timeline for this draft decree to take effect from January 1, 2025. To ensure this effective date, the Ministry of Finance has drafted the decree following a simplified procedure.
According to statistics on the tax management application system, there are currently about 380,000 individuals who are business individuals, business household owners with tax debts of 10 million VND or more and enterprises with tax debts of 100 million VND or more.
About 81,000 individuals are business individuals, business household owners with tax debts of 50 million VND or more and enterprises with tax debts of 500 million VND or more; about 40,000 individuals are business individuals, business household owners with tax debts of 100 million VND or more and enterprises with tax debts of 1 billion VND or more./.
According to Vietnam+
Source: https://baothanhhoa.vn/de-xuat-hoan-xuat-canh-ca-nhan-chu-ho-no-thue-qua-han-tu-50-trieu-dong-tro-len-234944.htm
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