HCMC – The Government is proposing amending the Law on Tax Administration to establish clear thresholds for tax debt levels and delinquency durations that could lead to temporary overseas travel bans.
The draft amendment, discussed during the National Assembly Standing Committee’s 39th session on November 19, aims to address growing concerns over the current rules, which impose overseas travel restrictions for any amount of unpaid tax.
Under the proposed changes, the Government will define specific tax debt amounts and delinquency periods that would trigger overseas travel bans. This move seeks to balance effective tax enforcement with fairness, as the existing system has been criticized for being too stringent, disproportionately impacting individuals and small businesses for relatively minor tax debts.
Currently, overseas travel bans apply broadly to all taxpayers and their legal representatives, regardless of the debt amount. Critics argue that this approach is overly harsh, and calls for reform have gained momentum.
The draft law also includes a requirement for tax authorities to notify individuals in advance if they are at risk of being barred from leaving the country due to unpaid taxes.
Tax authorities describe overseas travel restrictions as a minor enforcement tool. However, the National Assembly’s Finance and Budget Committee has urged the Government to carefully assess the potential impact, and advocates for a “reasonable” threshold to ensure the measure effectively supports tax collection without creating unnecessary burdens for taxpayers.
