Tax Department Tightens Tax Management: Tax Debtors May Be Banned from Leaving the Country!

Reference: Official Letter No. 5258/BTC-TCT Dated May 22, 2024, from the Ministry of Finance

The Ministry of Finance has recently issued an official letter requesting local authorities to tighten tax management, including a stringent measure to temporarily suspend the exit of individuals who owe taxes or representatives of tax-delinquent enterprises.

Key Points from the Official Letter:

Reason: Tax arrears severely impact the state budget, complicating tax management and creating unfair competition in business. Many individuals and enterprises engage in tax evasion and delinquency, causing significant losses to the state budget.

Target Subjects:

• Individuals with tax debts.

• Legal representatives of tax-paying entities (enterprises) who are subject to enforced administrative decisions on tax management and have not fulfilled their tax obligations, especially those no longer operating at their registered addresses.

Additional Measures Requested by the Ministry of Finance:

• Enhancing Public Awareness: Increase efforts to educate the public and businesses about the importance of tax compliance.

• Collaboration with Relevant Authorities: Work closely with other functional agencies to inspect and handle tax law violations.

• Effective Tax Debt Recovery: Implement coercive measures promptly and effectively to recover tax debts.

The tightening of tax management by the Tax Department is essential to ensure fairness in business and protect the state budget. Businesses and individuals must improve their awareness of tax compliance to avoid undesirable consequences.

Contact W&A for more detailed information!