HÀ NỘI — The Ministry of Finance has proposed implementing exit bans on individuals and household business owners with tax debts exceeding VNĐ50 million (approximately US$2,000), and on businesses owing over VNĐ500 million if these debts remain unpaid for more than 120 days beyond the due date.

The draft decree is expected to come into effect on January 1, with an expedited approval process to ensure timely implementation.

According to the Ministry of Finance, the VNĐ50 million threshold for individuals was determined by comparing it with benchmarks from countries such as Malaysia (approximately $2,000) and the United States ($40,000) in relation to average per capita income. For businesses, the VNĐ500 million threshold is set at 10 times the individual threshold, aligning with practices in regions like Taiwan, where the benchmark is approximately VNĐ1.57 billion.

The proposal aims to enhance compliance and prevent prolonged overdue tax debts. Tax authorities will issue electronic notifications or publish announcements on their official websites once taxpayers fall into the enforcement category. If taxpayers fail to settle their debts within 30 days of receiving the notice, an official travel ban will be enforced.

For taxpayers who are no longer operating at their registered business addresses, or for Vietnamese nationals emigrating abroad and foreign nationals leaving Việt Nam without fulfilling their tax obligations, the Ministry suggests applying immediate travel bans at border control points.

According to data from the tax management system, approximately 81,000 individuals and household businesses currently owe more than VNĐ50 million in taxes, while over 40,000 businesses have debts exceeding VNĐ500 million. Notably, around 40,000 cases involve individuals owing over VNĐ100 million and businesses owing over VNĐ1 billion. — VNS