Storm victims granted tax relief, payment deferrals
Businesses experiencing direct impacts on production and operations may receive reductions of up to 30 per cent on special consumption tax for the year of occurrence.
HÀ NỘI — The Tax Department under the Ministry of Finance has issued guidance to provincial tax authorities on implementing tax exemptions, reductions and payment deferrals for businesses and individuals affected by storms No 10 (Bualoi) and 11 (Matmo) and subsequent flooding.
Under current tax management and value-added tax laws, taxpayers who suffer material damage from natural disasters are eligible for relief across multiple tax categories.
Businesses experiencing direct impacts on production and operations may receive reductions of up to 30 per cent on special consumption tax for the year of occurrence, not exceeding the value of damaged assets after compensation.
Those suffering losses due to natural disasters, fires or unforeseen accidents can have resource taxes exempted or reduced, with previously paid amounts refunded or offset against future tax periods.
For non-agricultural land use tax, businesses with damage exceeding 50 per cent of assessed value receive full exemptions, while those with 20-50 per cent damage qualify for 50 per cent reductions.
Regarding land rental fees, businesses operating for over three years in agriculture, forestry, aquaculture or salt production receive full exemptions when damage reaches 40 per cent or more. For damage below 40 per cent, reductions match the damage percentage.
Companies temporarily suspending operations for disaster recovery qualify for 50 per cent land rental reductions during the closure period.
Affected businesses can defer tax payments for up to two years without penalties or late fees.
Individual business households are eligible for reductions in personal income tax corresponding to damage levels, special consumption tax reductions up to 30 per cent, and resource tax relief proportional to losses. They can defer value-added tax and personal income tax payments until December 31, with extensions up to two years for severe cases.
Tax authorities will process applications within 30 days, or 40 days if site verification is required.
According to the Department of Dyke Management and Natural Disaster Prevention and Control, flooding following storm No 11 caused approximately VNĐ7.05 trillion in damages as of October 11. — VNS
