Tax assistance due to natural disasters help businesses and individuals reduce financial pressure when facing damage from natural disasters, storms, floods or droughts. Policies include tax payment extensions, penalty exemptions, and tax reductions. VAT, CIT, PIT, TDB, natural resource tax, land use tax and land rent. Correctly applying these regulations helps stabilize production, maintain cash flow and quickly recover operations. The article below provides detailed instructions on how to effectively utilize tax support due to natural disasters.
Tax Extension: An Important Form of Disaster Tax Relief
One of the important incentives in the tax support policy due to natural disasters is tax payment extension:
- Businesses and individuals affected by natural disasters can extend tax payments for up to 2 years.
- The extension period is not subject to late payment penalties.
- Required documents: proof of damage, inventory report or confirmation from the authorities.
Tax payment extension is a practical measure in tax support due to natural disasters, helping taxpayers stabilize cash flow and maintain business operations.
Exemption from administrative fines: Form of tax support due to natural disasters for taxpayers
In addition to the extension, disaster tax relief also includes exemption from administrative penalties:
- Exemption from fines up to the value of damages caused by natural disasters.
- Applies to unintentional violations, such as late filing of returns or late payment of taxes.
- Documents to prepare: proof of damage, violation records to send to tax authorities.
This policy helps taxpayers reduce legal and financial burdens when natural disasters cause difficulties.
Tax support due to natural disasters on value added tax (VAT)
When goods, raw materials or services are damaged by natural disasters, input VAT can still be deducted if the following conditions are met:
- Damaged goods and services are not compensated.
- Have proof of damage, inventory records or reports from authorities.
- Full accounting, compliance with VAT regulations.
This is one of the important forms of disaster tax support, helping businesses reduce costs and maintain operations.
Tax support due to natural disasters corporate income tax (CIT)
Expenses for natural disaster prevention and mitigation, along with the value of uncompensated damages, are included in deductible expenses when determining corporate income tax:
- Reduce taxable income, thereby reducing the number of corporate income tax must pay.
- The records include inventory records, material purchase contracts, and repair cost invoices.
This policy is an important part of disaster tax support, helping businesses quickly recover from natural disasters.
Personal Income Tax (PIT) Disaster Relief Support
Individual businesses facing difficulties due to natural disasters are also entitled to tax support due to natural disasters:
- Consider reduction personal income tax corresponding to the extent of damage.
- Proof of damage must be submitted to the tax authorities.
This helps small businesses stay afloat and reduces financial pressure during disaster recovery.
Tax support due to natural disasters on special consumption tax (TTDB)
Enterprises producing goods are responsible for special consumption tax Also supported:
- Maximum reduction of special consumption tax of 30% on tax payable if facing difficulties due to natural disasters.
- The reduction shall not exceed the value of the damaged property after compensation.
- The file includes invoices, documents related to production and damage assessment.
This policy helps manufacturing businesses stabilize cash flow and continue operations.
Disaster tax relief on resource tax
Taxpayers who declare and pay resource tax and suffer losses due to natural disasters are entitled to:
- Tax exemption, reduction or refund/deduction to the next period depending on the level of damage.
- Applicable to resources such as water, minerals, forest land, and aquatic products.
- The file includes confirmation of damage from the authorities.
This is a form of disaster tax relief that helps resource exploitation businesses reduce financial losses.
Tax support due to natural disasters on non-agricultural land use tax
Natural disasters can damage land and property on land, affecting tax obligations:
- Taxpayers are exempted or reduced from land use tax depending on the level of damage.
- The file includes a damage assessment report, photos and related documents.
This policy is an important part of disaster tax relief, helping businesses maintain operations and recover quickly.
Disaster tax support for land rent
Disaster tax support on land rent is one of the important incentives to help businesses overcome difficulties when suffering damage from natural disasters. This policy applies to agricultural, forestry, fishery, salt production land, as well as other uses, with appropriate forms of land rent exemption and reduction. These incentives help reduce fixed costs, maintain finances and ensure stable business operations even when having to temporarily stop due to natural disasters.
Agricultural land, forestry, fishery, salt
Disaster tax support for agricultural, forestry, fishery and salt land helps land users reduce the financial burden when they suffer damage. According to the policy, businesses or individuals can be exempted or reduced from land rent according to the actual damage rate, with documents including inventory records, damage confirmation and land lease contracts. This is a practical way to stabilize finances and maintain production activities after natural disasters.
- Exemption or reduction of land rent according to the rate of damage.
- Documents: inventory report, damage confirmation, land lease contract.
Other uses
Disaster tax support for other land uses helps businesses reduce costs when they have to temporarily suspend operations due to natural disasters. According to the policy, land users are entitled to a 50% reduction in land rent during the suspension period, helping to maintain finances and stabilize business operations. These incentives are an important part of disaster tax support, especially supporting businesses to overcome difficulties caused by natural disasters.
- Reduce 50% land rent during temporary suspension of operations due to natural disasters.
- Help businesses reduce fixed costs and maintain finances.
These incentives are an essential part of disaster tax relief, especially for businesses that have had to temporarily suspend operations.
Notes when applying for tax support due to natural disasters
To receive effective incentives, businesses and individuals need to:
- Record damage accurately: minutes, photos, reports to authorities.
- Keep complete records: invoices, contracts, and documents of repair costs.
- File promptly for disaster tax relief.
- Professional advice: contact tax authorities to determine exact benefits.
Conclude
Tax support due to natural disasters includes: tax payment extension, penalty exemption, reduction of VAT, CIT, PIT, SCT, resource tax, land use tax and land rent. These policies help businesses and individuals reduce financial pressure, stabilize production and recover quickly.
Taxpayers need to prepare complete documents and contact the tax authorities promptly to enjoy maximum benefits. Correctly applying tax support due to natural disasters will help protect assets and maintain sustainable operations in the long term.
To optimize the benefits of tax support due to natural disasters and ensure compliance with legal regulations, businesses and individuals can confidently choose MAN – Master Accountant Network. We provide accounting services, auditing services and full package tax accounting services, help process tax records, prepare documents to prove damages and choose the right service package for your business size. Contact MAN today to receive professional support, save time and minimize legal risks.
Service contact information at MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
- Mobile/Zalo: 0903 963 163 – 0903 428 622
- Email: man@man.net.vn
