This move aims to ease the financial burden on those impacted by natural disasters, fires, accidents, or severe illnesses that affect their ability to pay taxes.

Taxpayers struggling due to these circumstances may receive a reduction in personal income tax, though the reduction will not exceed the total tax due. Manufacturers facing special consumption tax difficulties due to natural disasters or accidents will be eligible for tax reductions based on actual losses, up to 30% of the tax due for the year of the damage.

Value-added tax on goods and services used in production and business will be fully deductible, including VAT on damaged taxable goods.

For corporate income tax, businesses incurring costs related to losses from natural disasters, epidemics, or accidents will have these costs considered deductible when determining taxable income.

Taxpayers of resource taxes affected by natural disasters or accidents causing losses to declared and taxed resources may be granted tax exemptions or reductions. If taxes have already been paid, they will be refunded or offset against future resource tax liabilities.

Those suffering damage from force majeure events will also be exempt from fines related to administrative tax violations, with the total amount waived not exceeding the value of the damaged assets, after accounting for any insurance or compensation received.

Late tax payment penalties will be waived for those affected by such events. Taxpayers unable to meet filing deadlines due to natural disasters will have their deadlines extended by the managing tax authority.

Requests for tax payment extensions due to material damage affecting production and business will be considered, with extensions not exceeding two years from the original tax payment deadline.

Binh Minh