2023-01-11-KPMG_Global-Vietnam_–_Tax_Authorities_Focusing_in_on_Tax_Debts_3页_480kb

Vietnam - Tax Authorities Focusing on Tax Debts

Core Content

In recent months, Vietnamese tax authorities have intensified their efforts to collect outstanding tax debts, particularly affecting expatriates. This increased focus has led to the issuance of tax debt notices, and in cases where debts remain unresolved or taxpayers are unresponsive to the third notice, temporary exit bans may be imposed. These bans are then communicated to immigration authorities, potentially impacting the individual's ability to leave Vietnam or re-enter in the future.

Key Risks of Unsettled Tax Debt

• Penalties and Interest: Taxpayers who fail to settle their debts may face additional financial penalties and interest charges.
• Deportation Risk: Individuals with unresolved tax debts may be at risk of deportation, especially if the authorities decide to take legal action.
• Complications in Re-entry: Even if an individual is not deported, they may encounter difficulties when applying for re-entry or re-issuance of a visa.

What Taxpayers Can Expect

• Tax Debt Notifications: Taxpayers may receive formal notices from the tax authorities regarding unpaid taxes.
• Exit Ban: If the debt remains unpaid or unacknowledged, a temporary exit ban may be issued.
• Immigration Impact: The immigration authorities will be informed of the exit ban, which could affect the individual's travel and re-entry plans.

KPMG Insights

KPMG provides the following insights to help taxpayers manage their obligations:

• Review Tax Debt Status: Taxpayers should review their tax debt status over the past 10 years to identify any potential issues.
• Reconciliation of Debts: It is advisable to reconcile tax debts with the authorities periodically or upon receiving a notice, as the recorded amount may not reflect the actual debt due to system errors or incorrect reporting.
• Prevent Future Debts: Adhering to tax payment deadlines and ensuring accurate payment descriptions can help prevent future tax debt issues.

What KPMG Can Help With

KPMG offers the following services to assist taxpayers:

• Periodic Tax Payment and Reconciliation: Helping taxpayers keep their tax obligations up to date.
• Tax Debt Review and Clearance: Assisting in resolving outstanding tax debts through formal communication with the tax authorities.
• Exit Ban Reconsideration: Supporting taxpayers in working with both tax and immigration authorities to reconsider or remove an exit ban.

Contact Information

For further assistance or information, taxpayers can contact:

• Andrea Godfrey
  Partner
  Mob. +84 917 974 454
  andreagodfrey@kpmg.com.vn

• Le Minh Hang
  Associate Director
  Mob. +84 914 331 115
  hmle@kpmg.com.vn

• Nguyen Thuy Duong
  Director
  Tel. +84 975 293 095
  duongtnguyen@kpmg.com.vn

Disclaimer

The information provided in this document is based on the insights of the KPMG International member firm in Vietnam. It is not intended to be a substitute for professional advice and should not be relied upon as legal or tax guidance. Always consult with a qualified professional for specific situations.

© 2023 KPMG Limited, KPMG Tax and Advisory Limited, KPMG Legal Limited, all Vietnamese one member limited liability companies and member firms of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

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