Hanoi exempts and reduces taxes for people facing difficulties due to storm No. 3

The Hanoi Tax Department has just sent a document to businesses and taxpayers to disseminate policies on tax extension, exemption and reduction in case of natural disasters to support and remove difficulties for those affected by storm No. 3 (storm Yagi) in the area.

Accordingly, input value added tax (VAT) of goods and services used for production and trading of goods and services subject to VAT is fully deductible, including non-compensated VAT of lost taxable goods.

Taxpayers facing difficulties due to natural disasters, fires, accidents, or serious illnesses that affect their ability to pay taxes will be considered for a reduction in personal income tax corresponding to the level of damage but not exceeding the amount of tax payable.

Producers of goods subject to special consumption tax who encounter difficulties due to natural disasters or unexpected accidents will also receive tax reductions. The tax reduction level is determined based on actual losses but not exceeding 30% of the tax payable in the year of the loss.

Taxpayers who suffer losses due to force majeure are also exempted from late payment fees.

Regarding corporate income tax, in case an enterprise has expenses related to the value of losses due to natural disasters, epidemics, fires and other force majeure events that are not compensated, these expenses will be included in deductible expenses when determining taxable income.

Taxpayers of natural resources who encounter natural disasters, fires, or unexpected accidents that cause damage to declared and taxed resources will be considered for exemption or 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 amount of tax payable for the following period.

In addition, taxpayers who suffer losses in cases of force majeure will be exempted from fines for administrative violations of tax management. The total amount of exempted fines shall not exceed the value of damaged assets and goods, after deducting the insured and compensated value (if any).

Taxpayers who suffer losses due to force majeure are also exempted from late payment fees.

Taxpayers who are unable to submit their tax returns on time due to natural disasters will be granted an extension to submit their tax returns by the head of the tax authority directly managing them.

Tax payment extension is considered based on the taxpayer's request in cases of material damage, directly affecting production and business due to force majeure. The tax payment extension period shall not exceed 2 years from the tax payment deadline.

Source: https://www.nguoiduatin.vn/ha-noi-mien-giam-thue-cho-nguoi-gap-kho-khan-do-bao-so-3-204240914215649347.htm