Tax exemption and reduction for businesses, households and individuals affected by storms and floods

Mr. Vu Van Manh (67 years old, in Bai Chay ward) was sad when many of his family's stalls were destroyed by the storm - Photo: NGUYEN KHANH

Businesses are given a 2-year tax payment extension and a reduction of up to 30% in special consumption tax…

On September 16, the General Department of Taxation announced that it had issued an official dispatch directing the tax departments of provinces and cities including Hanoi, Hai Phong, Quang Ninh, Lao Cai, Yen Bai , Phu Tho... to guide taxpayers on tax exemptions and reductions. These are localities that suffered heavy damage due to storm Yagi (storm No. 3) and the floods caused by the storm.

According to current regulations, in case of material damage caused by natural disasters, the General Department of Taxation said that taxpayers are allowed to extend tax payment for no more than 2 years from the tax payment deadline.

In addition, taxpayers are also exempted from administrative fines for tax violations and late tax payment fees.

In addition, in case of inability to submit tax declaration on time, taxpayers are also given an extension.

Regarding the policy of tax exemption and reduction, such as corporate income tax, the General Department of Taxation guides that enterprises are allowed to deduct expenses when determining taxable income for the value of losses caused by natural disasters. The value of losses caused by natural disasters is determined by the total value of losses minus (-) the value of compensation according to the provisions of law.

In addition, enterprises are allowed to deduct direct welfare expenses such as direct expenses to support families of employees affected by natural disasters. The total expenses must not exceed 1 month of the enterprise's actual average salary in the tax year.

Regarding special consumption tax reduction, according to the General Department of Taxation, taxpayers producing goods subject to special consumption tax who encounter difficulties due to natural disasters will receive tax reduction. However, the amount of tax exempted shall not exceed 30% of the tax payable in the year of the damage and shall not exceed the value of the damaged assets after compensation (if any).

Regarding exemption and reduction of resource tax, resource taxpayers are considered for exemption and reduction of tax payable for the amount of lost resources. In case tax has been paid, the tax paid will be refunded or deducted from the resource tax payable for the following period.

For non- agricultural land use tax, taxpayers are entitled to a 50% reduction in the amount of tax payable on the value of damage to land and houses on land caused by natural disasters from 20 - 50% of the taxable price.

Business households and individuals are exempted from tax.

For households and individuals doing business facing difficulties due to natural disasters, the General Department of Taxation emphasized that personal income tax, special consumption tax, resource tax, etc. will be reduced.

Specifically, the personal income tax rate is reduced corresponding to the level of damage but not exceeding the amount of tax payable.

With special consumption tax, business households and individuals are also entitled to tax reduction corresponding to actual losses caused by natural disasters, but not exceeding 30% of the tax payable in the year of damage and not exceeding the value of damaged assets after compensation (if any).

For resource tax, the tax rate is reduced corresponding to the amount of lost resources. In case tax has been paid, the tax paid will be refunded or deducted from the resource tax payable in the following period.

To receive tax reduction, business households and individuals submit documents to the direct tax authority. Within 30-40 days from the date of receiving complete documents, the tax authority will decide to exempt or reduce tax or notify in writing the reasons for not being eligible for tax reduction.

For business households that suffer material damage that directly affects production and business due to natural disasters, the tax payment deadline is extended for no more than 2 years from the tax payment deadline. Taxpayers are not subject to penalties and do not have to pay late payment fees calculated on the tax debt amount during the tax payment extension period.

Source: https://tuoitre.vn/mien-giam-thue-cho-doanh-nghiep-ho-va-ca-nhan-kinh-doanh-bi-thiet-hai-do-bao-lu-20240916192925115.htm