Exit bans for tax debts in Vietnam in 2026: thresholds and how to lift them quickly
The short answer
From 1 July 2026, Article 28 of Decree No. 252/2026/ND-CP sets out five cases in which a person may be temporarily banned from leaving Vietnam because of tax debts. The two key thresholds are:
Individual business owners and heads of household businesses: tax debt of VND 50 million or more, overdue by 120 days or more.
Legal representatives and beneficial owners of enterprises and cooperatives: the enterprise owes VND 500 million or more, overdue by 120 days or more.
Both cases apply where the taxpayer is subject to enforcement.
The tax authority sends a warning 30 days in advance through the e-tax system and publishes the information.
The fastest way to lift a ban: pay enough to bring the debt below the threshold. Full repayment is not required. The tax authority issues a cancellation notice as soon as the conditions are met.
The most significant change: beneficial owners are now covered
Previously, exit bans linked to company tax debts mainly targeted the legal representative. This left a familiar gap: the person actually controlling the business stayed out of reach, while the legal representative was often just an employee.
Decree No. 252/2026/ND-CP adds beneficial owners, as defined under the Law on Enterprises, to those who may be banned from leaving. Replacing the legal representative is therefore no longer a way around the measure. Business owners, including individual foreign investors, should track their company's tax position as closely as their own.
The five cases
Case | Who | Conditions |
1 | Individual business owners and heads of household businesses subject to enforcement | Tax debt of VND 50 million or more, overdue by 120 days or more |
2 | Beneficial owners and legal representatives of enterprises, cooperatives and cooperative unions subject to enforcement | Tax debt of VND 500 million or more, overdue by 120 days or more |
3 | The persons above, where the taxpayer has been notified as not operating at its registered address | 120 days after the notice without restoring or terminating the tax code |
4 | Foreign nationals | Tax debts past their due date |
5 | Vietnamese citizens emigrating, and overseas Vietnamese | Tax obligations not fulfilled before departure |
A note on Case 3. This catches many business owners by surprise. A company stops trading but never completes dissolution or terminates its tax code, and the tax authority then lists it as "not operating at the registered address". From that point, the 120-day clock starts. This case is determined by the 120-day period from the notice, not by the VND 50 million or VND 500 million thresholds.
How a ban is applied and lifted
Warning 30 days in advance. For individual business owners, heads of household businesses, beneficial owners and legal representatives with debts at the thresholds, the tax authority sends a warning through the e-tax system and publishes the information. This is the most important window for action.
Notice of application. If the issue is not resolved within the warning period, the tax authority issues an exit suspension notice to the taxpayer and the person concerned.
Same-day implementation. The immigration authority implements the suspension on the day it receives the tax authority's electronic notice.
Extension. At least 30 days before the suspension expires, if the tax obligations remain unfulfilled, the tax authority sends an extension notice.
Cancellation. Once the debt falls below the threshold or the obligations are fulfilled, the tax authority issues a cancellation notice and sends it to the immigration authority.
Six ways to lift an exit ban
Pay below the threshold. This is the fastest route. A company owing VND 520 million needs to pay just over VND 20 million to bring the debt under VND 500 million. Full repayment is not needed immediately.
Request an offset. If the business has overpaid tax or has a refund pending, ask for it to be offset against the debt.
Re-check the debt figure. The debt shown on the system often does not reflect reality: amounts paid but posted to the wrong code or period, or late-payment interest counted twice. Reconciling and requesting corrections may bring the debt below the threshold.
Restore or terminate the tax code where the business has been flagged as not operating at its registered address.
File a complaint if the measure was applied to the wrong person, at the wrong threshold, or without the required advance warning.
Consider debt freezing or instalment mechanisms under tax administration law, where the business qualifies.
Illustrative case
Mr K is the director and legal representative of a trading company. As he prepared to fly to Singapore to sign a contract, he discovered through the eTax Mobile app that he was on the exit suspension warning list. The company owed VND 620 million in VAT, 150 days overdue, because a customer had paid late.
Within 48 hours, the company took the following steps:
it reconciled the debt and found a VND 35 million payment posted to the wrong sub-code;
it asked the tax authority to correct this posting;
it paid a further VND 90 million to bring the debt below VND 500 million.
The tax authority issued a cancellation notice and sent it to the immigration authority. The business trip went ahead as planned, and the company scheduled the remaining debt for gradual repayment.
Prevention: four steps for business owners
Check regularly your tax position and any exit suspension status on the eTax Mobile app and e-tax system, especially before overseas trips.
Set internal alerts when overdue tax approaches VND 500 million (or VND 50 million for household businesses) and the 120-day mark.
Do not leave companies dormant. A business that stops trading should formally suspend operations or dissolve and terminate its tax code.
Manage individual roles across companies: legal representative and beneficial owner. Exit ban exposure attaches to individuals, not just the legal entity.
FAQs
How much tax debt triggers an exit ban for a company director?
VND 500 million or more, overdue by 120 days or more, where the company is subject to enforcement of tax administrative decisions.
Must the full debt be paid to lift the ban?
No. The debt only needs to fall below the applicable threshold. The tax authority then issues a cancellation notice.
Can changing the legal representative avoid an exit ban?
Not effectively. From 1 July 2026, the company's beneficial owners may also be subject to exit bans.
How can I find out whether I am subject to an exit ban?
Check the eTax Mobile app or the e-tax system. The tax authority also sends a warning 30 days in advance and publishes the information before applying the measure.
Legal basis
Law on Tax Administration No. 108/2025/QH15.
Decree No. 252/2026/ND-CP guiding the Law on Tax Administration (Article 28).
Law on Exit and Entry of Vietnamese Citizens and implementing regulations.
Law on Enterprises (provisions on beneficial owners).
How W&A can help
Exit bans are usually discovered at the worst possible moment: just before a business trip or an important negotiation. W&A helps businesses and their owners act quickly and prevent problems early:
Urgent resolution: reconciling the debt, requesting corrections and offsets, and determining the minimum payment needed to lift the ban.
Liaison with the tax authority to obtain a timely cancellation notice.
Periodic tax position reviews for companies and for individuals acting as legal representatives or beneficial owners.
Dissolution and tax code termination for dormant companies, eliminating the "not operating at registered address" risk.
Complaints against exit bans applied in breach of the rules.
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