Vietnam tax authority cracks down on split business schemes and uncovers hidden tax debts

The Vietnamese tax administration warned that the practice of "splitting" households or businesses to keep annual revenue below the 1 billion VND tax‑exempt threshold can be detected through its integrated data system, which links business registration, electronic invoices and bank transaction records. Authorities said that only genuinely independent entities – separate locations, capital, assets and legal responsibility – are recognised, while paper‑only splits may trigger audits and penalties.

Separately, several individuals have discovered unexpected tax liabilities using the eTax Mobile app, with debts ranging from a few hundred thousand to tens of millions of dong. Tax officials advise anyone shown a debt to contact the local tax office immediately to verify the amount, settle any penalties and avoid enforcement actions such as travel bans that can be applied after 30 days of non‑payment.