Ha Noi grants tax relief for Yagi flood victims
VGP - The Ha Noi Department of Taxation will provide payment deferrals, exemptions, and tax reductions for taxpayers affected by natural disasters, in a move seen as supportive and to alleviate difficulties for businesses and taxpayers in the city.
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In a recent open letter to businesses in the capital, the agency acknowledged that Typhoon Yagi had caused significant damage to organizations, individuals, and businesses, with long-term implications for their recovery.
The exemption may be reduced or waived for taxpayers who are unable to submit their tax returns on time due to natural disasters, calamities, epidemics, fires, or unforeseen accidents.
Taxpayers are still required to pay interest on arrears as prescribed, but interest may be waived in cases of force majeure.
If taxpayers are fined for tax violations and suffer losses due to force majeure, the fine may be waived. The total amount of the fine exemption will not exceed the value of the damaged assets or goods, after deducting insurance or compensation, if any.
In addition, tax payment deferral will be considered based on taxpayers' requests if their material damage directly affects their operations, which constitutes force majeure. The tax deferral period will not exceed two years from the tax filing deadline.
Specific exemption and reduction policies apply to different types of taxes. VAT and input tax on goods and services used for the production and trade of VAT-liable goods and services are fully deductible, including VAT on lost VAT-liable goods that are not compensated.
A tax reduction may be granted to special consumption taxpayers who face difficulties due to natural disasters or unexpected accidents.
The reduction will be determined on the basis of actual losses, but will not exceed 30 percent of the tax payable for the year in which the loss occurs, and will not exceed the value of the damaged assets, after compensation, if any.
Taxpayers who find themselves in difficulties due to similar causes that affect their ability to pay taxes may have their personal income tax reduced in proportion to their losses, but the deduction will not exceed the tax due.
In the case of non-agricultural land use tax, taxpayers who are affected by force majeure events and whose damage to land and property exceeds 50 percent of the taxable value, or between 20 percent and 50 percent, may be entitled to a tax reduction.
Super Typhoon Yagi caused extensive damage across the northern provinces, impacting numerous construction projects, private and corporate properties, as well as critical infrastructure, including roads, bridges, power grids, and public works./.
