LEGAL GUIDANCE

Cases of Exit Suspension Due to Tax Debts under Decree 252/2026/ND-CP and Official Letter 5622/CT-NVT

1. Purpose of the New Regulation

According to the guidance from the Tax Department, the application of exit suspension measures aims to:

• ensure the recovery of outstanding tax debts;
• enhance the effectiveness of tax administration;
• prevent taxpayers from leaving Vietnam without fulfilling their tax obligations;
• while also safeguarding the legitimate rights and interests of taxpayers by clearly stipulating the notification procedure and the mechanism for canceling exit suspension as soon as conditions are met.

2. Who can be subject to exit suspension?

Group 1. Taxpayers not operating at the registered address (Tax code status 06)

This group is guided in great detail by the Tax Department.

Subjects include:

• enterprises;
• cooperatives;
• business households;
• individual businesses;
• legal representatives;
• beneficial owners of enterprises.

Conditions for application

If the tax authority has determined that the taxpayer is not operating at the registered address and has issued a notice as prescribed, but after 120 days still has not carried out procedures to restore or terminate the validity of the tax code, they will be subject to exit suspension.

Implementation process

Step 1

The tax authority issues a notice that the taxpayer is not operating at the registered address.

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Step 2

After 90 days, if the taxpayer still has not carried out procedures to restore or terminate the validity of the tax code, the tax authority sends a Notice of impending exit suspension.

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Step 3

After an additional 30 days, if the taxpayer still has not carried out procedures, the tax authority issues an Exit Suspension Notice.

Notably, this case does not depend on whether the enterprise has tax debts. Merely not operating at the registered address and not resolving the tax code status within the deadline can lead to exit suspension.

3. When will an operating enterprise with tax debts be subject to exit suspension?

For enterprises, cooperatives, business households, and individual businesses that are still operating or temporarily suspended, awaiting dissolution (not in status 06), exit suspension applies when the following conditions are simultaneously met:

For business households, individual businesses

• are subject to enforcement of administrative decisions on tax administration;
• have tax debts of 50 million VND or more;
• the debt has been overdue for 120 days.

For enterprises, cooperatives

• are subject to tax enforcement;
• have tax debts of 500 million VND or more;
• the debt has been overdue for 120 days.

Application procedure

Before issuing an exit suspension decision, the tax authority must:

• send prior notice via the electronic tax account;
• and simultaneously publicize the information on the Tax sector's portal.

After 30 days from the date of notification, if the taxpayer still does not rectify the situation, the tax authority will issue an exit suspension notice.

4. Are foreigners subject to exit suspension?

Yes.

According to the Official Letter, foreign individuals with overdue tax debts who have not fulfilled their tax obligations will be subject to exit suspension.

Unlike enterprises or business households, for foreigners, the tax authority can immediately issue an exit suspension notice, without having to carry out the prior notification step about the application of this measure.

5. Does this apply to Vietnamese citizens preparing to settle abroad?

Yes.

For:

• Vietnamese citizens departing to settle abroad;
• Vietnamese citizens settling abroad before leaving Vietnam,

if they still have overdue tax debts, they will also be subject to exit suspension until their tax obligations are fulfilled.

6. When will exit suspension be lifted?

Case 1. Tax code restoration

If an enterprise in status 06 performs the following:

• submits an application to restore the tax code;
• submits all missing tax declaration dossiers;
• submits invoice reports (if any);
• fulfills tax obligations and other payable amounts as prescribed;
• has complied with decisions on administrative penalties for tax violations,

the tax authority will issue a notice to lift the exit suspension.

Case 2. Termination of tax code validity

If an enterprise carries out dissolution procedures, ceases operations, and:

• fulfills tax obligations;
• fulfills import-export related obligations (if any);
• completes tax inspection as prescribed,

then after the tax authority confirms the fulfillment of obligations, the exit suspension notice will be lifted.

Case 3. Enterprise with tax debts

If the taxpayer has paid taxes such that:

• the total outstanding debt is less than 50 million VND (for business households, individual businesses), or
• less than 500 million VND (for enterprises),

the tax authority will issue a notice to lift the exit suspension.

7. New Automated Process

One of the important new points of the Official Letter is the digitization of the entire process.

After the taxpayer makes payment:

• the bank transmits electronic documents;
• the tax system automatically offsets obligations;
• automatically determines eligibility for suspension cancellation;
• automatically generates a notice;
• digitally signs;
• transmits to the Immigration Department.

According to the Official Letter, the entire processing time on the tax authority's side is only about 08 minutes, after which the Immigration Department's system continues processing for about 05 minutes for air border gates.

8. What should businesses note to avoid being temporarily suspended from exit?

According to the guidance of the Tax Department, businesses should:

Regularly review tax code status

In particular, it is necessary to check whether the business has been switched to status 06 - Not operating at the registered address.

Monitor tax obligations

Do not let tax debt exceed:

• 50 million VND for business households;
• 500 million VND for businesses,

and simultaneously extend for more than 120 days.

Maintain electronic tax account

All notifications regarding:

• will apply temporary exit suspension;
• temporary exit suspension;
• extension;
• cancellation

are all sent via the electronic tax account and registered email.

Therefore, businesses need to regularly update contact information and monitor notifications on the eTax or eTax Mobile system.

OPLAW Insight

Official Letter 5622/CT-NVT does not expand the scope of subjects temporarily suspended from exit but standardizes the implementation process of Article 28 of Decree 252/2026/ND-CP nationwide. A notable point is that the application of this measure has been almost entirely digitized, from sending notifications, publicizing information to canceling the temporary suspension immediately after the taxpayer fulfills their obligations.

For businesses, this is a reminder that tax management is not only about timely tax payment obligations but also includes managing tax code status, updating operating addresses, monitoring electronic notifications, and promptly handling procedures with tax authorities. Proactively reviewing these contents will help limit the risk of legal representatives, business household owners, or beneficial owners being temporarily suspended from exit, affecting business operations and international work plans.

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