HCMC – The Government has instructed the Ministry of Finance to urgently review and revise regulations governing tax obligations linked to overseas travel, following concerns that taxpayers have been temporarily barred from leaving the country over relatively small unpaid tax amounts.

Under Document No. 5640/VPCP-KTTH recently issued by the Government Office, Deputy Prime Minister Nguyen Van Thang directed the Ministry of Finance to address shortcomings in regulations implementing the Law on Tax Administration and submit proposed revisions to the Government by June 20. The State Bank of Vietnam and the Ministry of Culture, Sports and Tourism have also been asked to coordinate on measures to avoid disruptions to tourism activities and international payment transactions. Current regulations under Decree No. 49/2025/ND-CP impose temporary exit bans on individuals and household business owners with tax arrears of VND50 million or higher that have remained overdue for more than 120 days. For legal representatives of enterprises and cooperatives, the threshold is VND500 million with the same overdue period. Responding to recent public concerns over cases involving relatively small tax debts, the Tax Department said most affected individuals had either ceased operations without notifying authorities or were preparing to emigrate without settling outstanding tax obligations. The Government's move aims to strike a balance between ensuring tax compliance and maintaining a favorable business environment. Temporary exit bans have proven effective in recovering overdue taxes, but businesses have argued that rigid enforcement may unintentionally disrupt commercial activities. In some cases, company representatives have had international business trips delayed because of unresolved tax liabilities, including debts arising from administrative errors or reconciliation delays, resulting in missed business opportunities. Authorities are also seeking to improve coordination between the Tax Department and the Immigration Department under the Ministry of Public Security. The two agencies are working to upgrade their systems so that travel restrictions can be lifted in real time once tax payments are received by the State Treasury. At present, delays in updating information mean that taxpayers who settle their obligations shortly before departure may still face travel restrictions until records are manually processed. Authorities are also considering introducing automated notifications through electronic tax accounts to provide taxpayers with advance warnings and improve transparency.