Official letter No. 4964/TCHQ-TXNK dated November 22nd, 2022 of the General Department of Vietnam Customs regarding cancellation of suspension of exit

Based on clause 7 Article 124 of the Law on Tax administration No. 38/2019/QH14 the General Department of Vietnam Customs assumes that customs authorities may apply the measure of suspension of exit with regard to an individual that is the legal representative of an enterprise that is subject to the enforcement of tax debt.

The cancellation of the measure of suspension of exit imposed on such individual being the legal representative shall be considered only when the enforced enterprise fulfills its tax obligations (point c clause 2 Article 21 of Decree No. 126/2020/ND-CP).

For the case where the enterprise is entitled to the tax debt charge-off, although clause 5 Article 124 of the Law on Tax administration No. 38/2019/QH14 regulates that the tax enforcement measure will not be applied, the measure of suspension of exit does not belong to tax enforcement measures as regulated at Article 125 of the Law on Tax administration.