Data from the General Department of Taxation (GDT) indicates that temporary exit bans due to tax debts have nearly tripled this year, with over 6,500 cases compared to last year's 2,400. Temporary exit bans have been employed by Vietnamese tax authority as an effective measure to recover tax debts. In order to provide a more specific approach to tax debt management and recovery, the GDT has recently issued Official Letter 4216/TCT-QLN, dated September 23, 2024.

Tax authorities will implement a tiered response to outstanding tax debts. The audit department monitors and encourages payment for debts under 30 days. From 30 to 60 days, formal electronic Tax Debt Notifications are issued. Between 60 and 90 days, tax officers maintain regular contact with debtors, warning of impending enforcement. Once debts exceed 90 days, enforcement actions begin. This graduated system aims to prompt early payment and clearly communicate consequences of prolonged debt.

The directive requires immediate action on debts over 90 days, including public disclosure. Tax authorities can use multiple enforcement measures simultaneously. Key strategies include implementing temporary exit bans for delinquent taxpayers, especially those no longer at registered addresses, with regular review of ban periods. Ban notifications will be issued through the centralized tax management system and made accessible on the tax sector's website and on etax and etaxmobile applications.

The Deputy Director General of the GDT has emphasized that enforcement measures will be applied to all qualifying debts, regardless of their magnitude. However, he has assured that authorities will tailor their approach to each case, focusing on high-risk scenarios to safeguard state budget interests.

In a parallel development, the Ministry of Finance is drafting amendments to seven laws, including the Tax Administration Law. The proposal would extend tax enforcement to individual and household business owners, as well as legal representatives of enterprises and cooperatives.

The proposed legislative changes, coupled with the existing enforcement measures, signal a more robust and far-reaching tax administration framework for the future. Taxpayers across all sectors are advised to stay informed about these developments and ensure timely compliance with their tax obligations to avoid potential enforcement actions.