General Department of Taxation implements tax exemption, extension of taxes and fees for people and businesses affected by storm No. 3

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People and businesses will be exempted and extended many taxes. Photo: Internet

According to instruction, enterprises will be exempted and extended many taxes: Personal Income Tax, Corporate Income Tax, Special Consumption Tax, VAT deduction, Resource Tax, and non-agricultural land use tax.

Accordingly, businesses affected by natural disasters will be granted an extended 1-2 years in paying taxes (depending on each case of storm impact). Businesses are allowed to deduct input VAT on goods used for production and business.

Regarding the Corporate Income Tax, businesses are allowed to include in expenses when determining taxable income due to losses caused by natural disasters. In order to be eligible for deductible expenses, enterprises need to have a record of the inventory of the value of damaged assets and goods; insurance compensation records (if any), records specifying the responsibilities, organizations and individuals who must compensate (if any); records determining the funding for overcoming the consequences of natural disasters; and welfare payments for employees affected by natural disasters.

Enterprises affected by natural disasters are also entitled to a maximum reduction of 30% of the Special Consumption Tax in the year of the damage.

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 their land and houses are damaged.