HCMC – The General Department of Taxation has announced tax relief for businesses, organizations, and individuals affected by typhoon Yagi and ensuing flooding.
Taxpayers impacted by the storm are eligible for a deferral of up to two years from the original due date, according to the department.
Late payment fees will be waived in cases of force majeure, such as natural disasters. Penalties for administrative tax violations will also be waived if the taxpayer proves that the damages were caused by the storm.
The relief measures will be implemented by tax authorities in the affected provinces and cities. To qualify, taxpayers must submit documentation proving losses of assets or goods.
For businesses, the value-added tax (VAT) will be fully deductible for goods and services used in production, even if the VAT on lost goods is not covered by insurance.
Corporate income tax (CIT) deductions will be allowed for expenses related to natural disaster damages, provided they are not reimbursed by insurance or other means.
Tax reductions will be capped at 30% of the annual tax due and cannot exceed the value of the damaged assets after compensation.
Households and individuals affected by the storm can also apply for tax reductions with their local tax authorities. Applications will be reviewed within 30 to 40 days.
