2025 Vietnam Exit Ban Thresholds: New Regulations Explained

From 2025, the regulations on exit ban thresholds will officially come into effect, according to Decree 49/2025/ND-CP. These regulations aim to enhance immigration management while protecting the legitimate rights of individuals in cases where financial obligations have not been fulfilled or legal violations are being processed. The application of exit bans will help prevent evasion of obligations and create a clearer and fairer legal mechanism for managing citizens’ exit. Below, Viet An Law provides an overview of new regulation on the 2025 Vietnam exit ban thresholds.

What is an exit ban?

According to Clause 7, Article 2 of the Law on Exit and Entry of Vietnamese Citizens 2019, an exit ban is defined as: “An exit ban is the temporary suspension of the right to exit for Vietnamese citizens.”

Who will be subject to the 2025 Vietnam exit ban thresholds due to tax debts from 2025?

According to Clause 1, Article 2 of Decree 49/2025/ND-CP, the subjects who will be subject to exit bans due to tax debts include:

• Business individuals, household business owners, individuals who are legal representatives of enterprises, cooperatives, and cooperative unions, are subject to administrative enforcement of tax management decisions.
• Business individuals, household business owners, individuals who are legal representatives of enterprises, cooperatives, and cooperative unions that are no longer operating at the registered address.
• Vietnamese citizens emigrating abroad, overseas Vietnamese, and foreigners before exiting Vietnam who have tax debts and other amounts owed to the state budget managed by the tax authority.

Application of tax debt thresholds and overdue periods in cases of 2025 Vietnam exit ban thresholds as specified in Decree 49/2025/ND-CP

The decree specifies the application of tax debt thresholds and overdue periods in cases of exit bans, as well as the notification and cancellation procedures as follows:

Case 1:

• Business individuals and household business owners are subject to administrative enforcement of tax management decisions with tax debts of VND 50 million or more and overdue tax debts exceeding 120 days.
• When taxpayers are subject to administrative enforcement of tax management decisions as stipulated in Article 124 of the Tax Management Law 2019, the tax authority directly managing the taxpayer will immediately notify the violating individual about the application of the exit ban electronically via the taxpayer’s electronic tax transaction account. If electronic notification is not possible, the tax authority will notify on its official website.

Case 2:

• Individuals who are legal representatives of enterprises, cooperatives, and cooperative unions are subject to administrative enforcement of tax management decisions with tax debts of VND 500 million or more and overdue tax debts exceeding 120 days.
• For this case, the tax authority directly managing the taxpayer will immediately notify the violating individual about the application of the exit ban electronically via the taxpayer’s electronic tax transaction account. If electronic notification is not possible, the tax authority will notify on its official website.

Case 3:

• Business individuals, household business owners, individuals who are legal representatives of enterprises, cooperatives, and cooperative unions that are no longer operating at the registered address with overdue tax debts, and after 30 days from the date the tax authority notifies about the application of the exit ban, have not fulfilled their tax obligations.
• The tax authority directly managing the taxpayer will notify on its official website about the application of the exit ban immediately after issuing the Notice of the taxpayer not operating at the registered address.

Case 4:

• Vietnamese citizens emigrating abroad, overseas Vietnamese, and foreigners before exited Vietnam with overdue tax debts and have not fulfilled their tax obligations.
• The tax authority directly managing the taxpayer will send a notification about the exit ban to the taxpayer electronically via the taxpayer’s electronic tax transaction account immediately upon receiving information about the Vietnamese citizen preparing to emigrate abroad, overseas Vietnamese, or foreigners preparing to exit. If electronic notification is not possible, the tax authority will notify on its official website.

Notes on Notification and Cancellation of 2025 Vietnam Exit Ban Thresholds

• After 30 days from the date of sending the notification to the taxpayer about the application of the exit ban electronically or via the tax authority’s official website, if the taxpayer has not fulfilled their tax obligations, the tax authority directly managing the taxpayer will issue a document on the exit ban and send it to the immigration management authority to implement the exit ban.
• If the taxpayer has fulfilled their tax obligations, the tax authority will immediately issue a notification to cancel the exit ban and send it to the immigration management authority. The immigration management authority will cancel the exit ban within 24 hours from the time of receiving the notification from the tax authority.
• Notifications about the exit ban and the cancellation of the exit ban are sent to the immigration management authority through digital data transmission between the information technology systems of the tax authority and the immigration management authority. If electronic transmission is not possible, the tax authority will send the exit ban notification and the cancellation of the exit ban notification to the immigration management authority in paper form.

Highlights of Decree 49/2025/ND-CP on exit ban thresholds effective from 2025

Enhancing the Efficiency of Tax Debt Recovery

• Reducing Tax Evasion: By applying exit bans, this decree helps prevent individuals and businesses from exploiting the opportunity to leave the country to evade tax obligations. This measure forces them to settle their tax debts before exiting.
• Encouraging Timely Tax Payments: Tax debtors will be motivated to pay their debts to avoid exit bans, creating a more transparent and compliant tax environment.

Strengthening Tax Management

• Strict Control of Tax Debtors: This regulation helps tax authorities easily manage and control individuals and entities likely to fail in fulfilling their tax obligations, thereby improving tax management.
• Transparency in Enforcement Actions: The process of notifying about exit bans is stipulated, creating transparency and openness in applying enforcement measures against tax evaders.

Protecting the Rights of the State and Citizens

• Protecting State Budget Interests: Forcing tax debtors to pay helps protect tax revenue, ensuring the state budget is not lost.
• Creating Fairness for Other Individuals and Organizations: This regulation ensures fairness in fulfilling tax obligations, as tax debtors cannot evade by leaving the country without paying.

Flexibility and Opportunities for Taxpayers

• Flexibility in Fulfilling Tax Obligations: Taxpayers can settle their tax debts within a reasonable time after receiving the notification, and if they fulfill their obligations, they can request the cancellation of the exit ban.
• Providing Opportunities to Pay Taxes on Time: The policy creates a specific timeframe for taxpayers to rectify their situation, reducing pressure on both tax authorities and tax debtors.

Towards a Healthy Business Environment

• Ensuring Fair Competition: Strict enforcement of tax obligations will create a fair business environment where all businesses comply with tax regulations, reducing unfair competition.
• Building Investor Confidence: Clear and transparent regulations on tax debt recovery will enhance investor confidence in Vietnam’s legal and financial environment.

These regulations aim to ensure effective tax debt recovery and prevent tax evasion through exit bans. Additionally, the notification and implementation process of exit bans is clearly and transparently stipulated, providing a solid legal basis for authorities to handle serious tax debt cases. If you need further advice or have any other questions, please feel free to contact Viet An Law for the best support!