There will be a policy of tax extension and exemption for businesses affected by storm Yagi.

Hanoi Tax Department recently sent a letter to businesses and taxpayers affected by storm No. 3.

The Hanoi Tax Department said: If taxpayers are unable to submit tax declarations on time due to natural disasters, epidemics, fires or unexpected accidents, the tax authority will extend the deadline for filing. In cases of force majeure, late payment penalties will be waived.

In addition, if a taxpayer is fined for an administrative tax violation but suffers damage due to a natural disaster, they may be exempted from the fine, but the amount of the exemption will not exceed the actual value of the damage after deducting insurance (if any).

There will be a policy of tax extension and exemption for businesses affected by storm Yagi . (Photo: ST)

The tax payment extension can be extended for up to 2 years in case of severe material damage caused by natural disasters. The Hanoi Tax Department also said that input VAT of damaged VAT-taxable goods will still be fully deductible, even in cases where compensation is not received.

For producers of excise taxable goods that suffer damage due to natural disasters, the tax rate may be reduced by up to 30% based on actual losses, but not exceeding the value of the damage after compensation.

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.

Taxpayers who suffer losses due to force majeure will be exempted from fines for administrative violations in 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).

For personal income tax, individuals affected by natural disasters, fires, or serious illnesses will be considered for tax reduction corresponding to the level of damage, but not exceeding the amount of tax payable.

For non -agricultural land use tax, if the value of damage to land and houses on land exceeds 50% of the taxable value, the taxpayer can enjoy tax reduction. In case of damage from 20% to 50%, there will also be corresponding tax reduction measures.

Exemption of late payment interest for taxpayers suffering losses in cases of force majeure.

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.

On the evening of September 16, the General Department of Taxation also sent an urgent dispatch to 26 Tax Departments of provinces and cities to guide solutions to support organizations, individuals, and businesses suffering losses due to storm No. 3 and floods after the storm. The Tax Departments of Hanoi and Thai Binh... sent letters to businesses and taxpayers in the area to guide them on policies related to tax extensions and exemptions due to natural disasters.

The official dispatch of the General Department of Taxation stated that, implementing the direction of the Prime Minister, the General Department of Taxation requested the Tax Departments of provinces and cities where organizations, individuals and enterprises suffered damage due to Storm No. 3 and the floods after the storm, to guide taxpayers on 2 contents: Legal regulations on tax exemption, reduction, extension, tax policies for taxpayers affected by natural disasters; Legal regulations on tax exemption, reduction, extension, fees, and charges for households and individuals doing business affected by natural disasters.

Regarding the provisions of the law on tax exemption, reduction, and extension, and tax policies for taxpayers affected by natural disasters, the General Department of Taxation cites the provisions on: Tax payment extension; Exemption from late payment fees; Exemption from administrative penalties for tax management violations; VAT deduction; Special consumption tax reduction; Natural resource tax exemption and reduction; Non-agricultural land use tax exemption and reduction.

Regarding the content of legal regulations on tax, fee and charge exemption, reduction and extension for households and individuals doing business affected by natural disasters, the General Department of Taxation refers to the following regulations: On tax reduction; On tax payment extension.

The General Department of Taxation requests the Tax Departments of provinces and cities to propagate, disseminate, and guide organizations, individuals, and enterprises to implement the above-mentioned policies on tax exemption, reduction, and extension and coordinate with relevant agencies to promptly resolve issues related to administrative procedures, provide tax records, and documents kept at tax agencies related to determining the value of damage upon request and proposal of organizations, individuals, and enterprises suffering damage;

At the same time, assign coordinating and focal staff to promptly guide taxpayers; support damaged organizations, individuals and enterprises to restore tax records (tax declaration records, tax exemption and reduction records, tax refund records, tax payment extension records, etc.) and documents and vouchers serving the determination of damage value of organizations, individuals and enterprises according to regulations.

Source: https://www.congluan.vn/se-co-chinh-sach-gia-han-mien-giam-thue-cho-doanh-nghiep-chiu-anh-huong-do-bao-yagi-post312670.html