Official Letter No. 534/TCT-QLN response to Official Letter No. 5100/CTLAN-QLN requesting opinions on exit suspension

Regarding this matter, the General Department of Taxation provides the following opinions:

Clause 7, Article 124 of the Law on Tax Administration No. 38/2019/QH14, dated June 13, 2019, stipulates:
"7. An individual who is the legal representative of a taxpayer must fulfill the tax obligations of an enterprise subject to enforcement of an administrative decision on tax administration before exiting the country and may be subject to exit suspension in accordance with the laws on entry and exit."

Clause 1, Article 21 of Decree No. 126/2020/NĐ-CP, dated October 19, 2020, prescribes:
"1. Cases of exit suspension include:
a) An individual who is the legal representative of a taxpayer and is subject to enforcement of an administrative decision on tax administration but has not yet fulfilled the tax obligations."

In Official Letter No. 1457/TCT-QLN, dated April 10, 2024, the General Department of Taxation provided the following guidance:
"If there is sufficient evidence to confirm that an individual is no longer the legal representative of an enterprise subject to enforcement of an administrative decision on tax administration and has no obligations concerning the enterprise’s outstanding tax liabilities, that individual shall not be subject to exit suspension under Clause 7, Article 124 of the Law on Tax Administration No. 38/2019/QH14 and Clause 5, Article 36 of the Law on Entry and Exit of Vietnamese Citizens No. 49/2019/QH14."

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