TEMPORARY EXIT SUSPENSION MEASURES IN TAX ADMINISTRATION UNDER DECREE NO. 252/2026/ND-CP

Refining cases subject to temporary exit suspension measures

Effective from July 1, 2026, Decree No. 252/2026/ND-CP officially comes into effect, stipulating certain conditions for application to broaden the scope of regulation and increase the clarity of provisions regarding cases of temporary exit suspension measure for taxpayers, previously stipulated in Decree No. 49/2025/ND-CP.

For business individuals and heads of business households, the temporary exit suspension measure is applied when the taxpayer is subject to enforcement of administrative decisions on tax management, has outstanding tax debt of VND 50 million or more, and this debt has been overdue for 120 days or more.

For individuals who are the beneficial owners of an enterprise under the Enterprise Law, individuals who are the legal representatives of enterprises, cooperatives, and cooperative unions: The measure of temporarily suspending departure shall be applied when the taxpayer is subject to coercive enforcement of administrative decisions on tax management, has an outstanding tax debt of VND 500 million or more, and this outstanding tax debt has exceeded the prescribed deadline by 120 days or more. 

Business individuals, heads of business households, individuals who are beneficial owners of enterprises as stipulated by the Law on Enterprises, and individuals who are legal representatives of enterprises, cooperatives, or cooperative unions that fall under cases where the tax authority has sufficient grounds to determine and has issued a notice that the taxpayer is not operating at their registered address according to regulations, and within 120 days from the date the tax authority issues the notice, they fail to complete the procedures for restoring the tax code or terminating the tax code’s validity according to regulations, will be subject to temporary exit suspension measure as stipulated in point c, clause 1, Article 28 of Decree No. 252/2026/ND-CP.

For individuals with outstanding tax obligations before exiting the country, Decree No. 252/2026/ND-CP clarifies the scope of application for each group of subjects, including foreigners and Vietnamese citizens exiting the country to settle abroad, or Vietnamese residing abroad before exiting Vietnam.

This regulation reflects a new management perspective of the tax authority, whereby the responsibility to fulfill tax obligations is closely linked to the responsibility of representatives and related parties, thereby limiting the situation of exploiting exit to evade financial obligations to the State.

Enhancing Transparency Prior to the Imposition of Temporary Exit Suspension  Measures

One of the notable new points of Decree No. 252/2026/ND-CP is the processing mechanism aimed at creating conditions for taxpayers to rectify the relevant violations before the application of temporary exit suspension measures. Compared to previous regulations, Decree No. 252/2026/ND-CP has specified the notification procedure, determination of applicable cases, and coordination between the tax authority and immigration management agencies. This helps to limit the situation where taxpayers only become aware of their temporary exit suspension measure when going through procedures at the border gate, while also enhancing transparency in the enforcement process.

Expanding conditions for extension and removal of temporary exit suspension measures 

Decree No. 252/2026/ND-CP supplements regulations on the extension of temporary exit suspension measures for foreigners. Accordingly, at least 30 days before the expiry of the temporary exit suspension period, if the taxpayer has not yet fulfilled their tax obligations, the tax authority must send a notice of extension to the immigration management agency, the electronic tax transaction account of the person subject to temporary exit suspension measure, and publicly announce it on the tax authority’s information portal. This regulation ensures that the temporary exit suspension measure can be maintained when the taxpayer has not yet fulfilled their tax obligations, while also informing the taxpayer in advance about the extension to proactively arrange their exit plans and fulfill their tax obligations.

Regarding the cancellation of temporary exit suspension measure, Decree No. 252/2026/ND-CP is no longer limited solely to cases where the taxpayer has fully fulfilled their tax obligations. For certain enforcement cases, the temporary exit suspension measure will be canceled as soon as the outstanding tax debt is reduced below the threshold of VND 50 million or VND 500 million as stipulated, or when the debt is written off according to the law.

This regulation indicates a more flexible approach by the tax management authority, encouraging taxpayers to proactively rectify violations to have their exit rights restored sooner.

Shortening the Processing Time for Cancellation of Temporary Exit Suspension Measures

According to Decree No. 252/2026/ND-CP, the processing time for immigration management agencies has been shortened from “within 24 hours” (under Decree No. 49/2025/ND-CP) to “immediately upon receiving notification from the tax authority,” contributing to the protection of taxpayers’ legitimate rights. Furthermore, the Decree supplements a processing mechanism for cases where tax payment data on the system has not been fully updated, effectively resolving practical issues when taxpayers have fulfilled their obligations but the data has not been synchronized.

Legal Recommendations for Businesses

• For businesses (especially FDI enterprises, import-export businesses, or those that frequently send leaders on overseas business trips), the temporary exit suspension measure of their legal representatives can lead to contract disruptions, damage to reputation, and incur additional costs. Therefore, businesses need to proactively:
• Regularly review the status of tax obligation fulfillment, especially for taxes at risk of incurring late payment interest.
• Establish an early warning mechanism for tax debts.
• Legal representatives should check their tax obligation status before exiting the country.
• Proactively work with the tax authority to update data immediately after fulfilling obligations or meeting the conditions for cancellation of temporary exit suspension measure.
• Strengthen the role of the legal department or consulting lawyers in tax risk management.

Conclusion

Decree No. 252/2026/ND-CP marks a significant step in perfecting the tax debt management mechanism. Instead of solely focusing on debt recovery, the law balances the requirements of state management with the protection of taxpayers’ legitimate rights through increased transparency of conditions, expanded cancellation mechanisms, and shortened processing times.

In the context of the tax authority’s intensified application of digital data and risk management, proactively controlling tax obligations is the most effective solution for businesses and individuals to maintain stable, continuous, and legally compliant business operations./.