The Tax Directorate has issued Official Letter No. 4062/TCT-CS requesting the Tax Departments of provinces and cities - where there are organizations, individuals, and enterprises (DN) suffering damage caused by storm No. 3 and the floods after the storm - to reduce taxes for those who suffered damage.
The list of 26 provinces and cities includes: Quang Ninh, Hai Phong, Thai Binh, Nam Dinh, Hoa Binh, Lao Cai, Yen Bai, Son La, Lai Chau, Dien Bien, Ha Giang, Cao Bang, Bac Kan, Thai Nguyen, Tuyen Quang, Phu Tho, Vinh Phuc, Lang Son, Bac Giang, Bac Ninh, Hai Duong, Hanoi, Hung Yen, Ha Nam, Ninh Binh, Thanh Hoa.
According to the legal provisions on tax exemption, reduction and extension, taxpayers who suffer material damage, directly affecting production and business due to force majeure as prescribed in Clause 27, Article 3 of the Tax Administration Law No. 38/2019/QH14, are entitled to an extension of the tax payment deadline.
Accordingly, businesses affected by natural disasters will have their tax payments extended by 1-2 years (depending on the impact of the storm).
Enterprises are allowed to deduct input value-added tax on goods used for production and business; are exempted from late payment fees and administrative penalties for tax management violations.
Enterprises affected by natural disasters are also entitled to a maximum reduction of 30% of special consumption tax in the year of damage, not exceeding the value of damaged assets after compensation (if any).
Regarding resource tax, enterprises are exempted or have their tax reduced for the amount of lost resources. If they have paid the tax, it will be refunded or deducted from the tax payable in the following period. Enterprises are also entitled to a 50% reduction in non-agricultural land use tax if they suffer damage to land and houses.
For individuals and business households affected by natural disasters, personal income tax, special consumption tax and resource tax will be reduced. In which, the personal income tax rate will be reduced corresponding to the level of damage but not exceeding the amount of tax payable.
Special consumption tax is reduced corresponding to the damage but not more than 30% of the tax payable. The resource tax is reduced corresponding to the amount of lost resources; in case the tax has been paid, the tax paid will be refunded or deducted from the resource tax payable in the following period.
