Prescribed in Article 62, Law on tax administration No. 38/2019/QH14 dated 13 June 2019 (“Law on tax administration 2019”), as follows:
“1. A taxpayer may apply for tax deferral in one of the following cases:
a) The taxpayer’s business suffers damage due to a force majeure events specified in Clause 27 Article 3 of this Law
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2. A taxpayer eligible for tax deferral mentioned in Clause 1 of this Article may have part or all of the tax deferred.
3. Tax may be deferred:
a) For up to 02 years from the day following the tax filing deadline in the cases specified in Point a Clause 1 of this Article
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4. The taxpayer will not incur fines and late payment interest on the outstanding tax during the deferral period.
5. In consideration of the application for tax deferral, the head of the tax authority shall decide the amount of tax deferred and the deferral period .”
Application for tax deferral is prescribed in Article 64, Law on tax administration 2019, specifically as below:
“1. A taxpayer eligible for tax deferral as prescribed in this Law shall prepare and send an application for tax deferral to the supervisory tax authority.
2. An application for tax deferral includes:
a) An application form specifying the reasons for deferral, the amount of tax and the deferral period;
b) Documents supporting the reasons for deferral.
3. The Minister of Finance shall specify the composition of the application for tax deferral.”
Prescribed in Clause 8, Article 59, Law on tax administration 2019, specifically as follows:
Taxpayers may be exempt from paying the late payment interest specified in Clause 1 of Article 59, Law on tax administration 2019 in the force majeure events specified in Clause 27 Article 3 of this Law.
Prescribed in Clause 1, Article 140, Law on tax admisitration 2019, specifically as below:
“1. The taxpayer that commits a tax offence in a force majeure event specified in Clause 27 Article 3 of this Law will be exempt from paying the fine. The total fine exempted shall not exceed the loss of assets or goods.”
Detailed instructions are stated in Article 43, Decree No. 125/2020/ND-CP dated 19 October 2020, amended and supplemented by Clause 6, Article 1, Decree No. 102/2021/ND-CP dated 16 November 2021.
Prescribed in Clause 1, Article 14, Circular 219/2013/TT-BTC dated 31 December 2013 issued by the Ministry of Finance, specifically as follows:
“1. Input VAT on goods and services serving the manufacture or sale of goods/services subject to VAT shall be deducted in full, including non-refundable input VAT on damaged goods.
Non-refundable input VAT on damage goods may be deducted in an event of natural disaster, blaze, damage that is not covered by insurance, degraded or expired goods that must be destroyed. The taxpayer must present sufficient documents to prove the damage not covered by insurance.”
According to Article 9, Law on corporate income tax and implementation regulations:
The following expenses are considered deductible expenses when calculating taxable corporate income if they meet the conditions stated in Clause 1, Article 9 of Law on CIT:
- The uncompensated value of losses caused by natural disasters, epidemics or other force majeure circumstances (Point a, Clause 2, Article 9, Law on CIT). The uncompensated value of losses caused by natural disasters, epidemics or other force majeure circumstances = total value of losses minus (-) the value of losses compensated by insurance company or other organizations, individuals being responsible for the compensation in accordance with laws.
- Financial supports for educational and healthcare activities, scientific research and for mitigating natural disaster consequences (Point n, Clause 2, Article 9, Law on CIT)
- Direct expenditures on the employees’ welfare, such as: expenditures on supporting employees’ families affected by natural disasters, hostilities, accidents, illness (Point 2.30, Clause 2, Article 6, Circular 96/2015/TT-BTC). The total expenditures incurred in the tax year must not exceed the practical average 1 month’s salary in the tax year.
Please kindly be noted, these expenses will be included in deductible expenses according to conditions above and they must meet the following conditions:
Prescribed in Article 9, Law on excise tax No. 27/2008/QH12 dated 14 November 2008, specifically as below:
“Taxpayers that produce excise taxable goods and face difficulties caused by natural disasters or unexpected accidents are entitled to tax reduction.
The tax reduction level shall be determined based on the actual extent of damage caused by natural disasters or unexpected accidents but must neither exceed 30% of the payable tax amount in the year the damage occurs nor exceed the balance between the value of damaged assets and the received compensation (if any).”
Application for excise tax reduction stipulated in Article 55, Circular 80/2021/TT-BTC dated 29 September 2021.
Prescribed in Clause 1, Article 9, Law on Natural Resource Tax No. 45/2009/QH12, specifically as follows:
“1. Natural Resource Tax payers that encounter natural disasters, fires or unexpected accidents, causing losses of natural resources for which Natural Resource Tax have been declared and paid, may be considered for exemption from or reduction of payable Natural Resource Tax for the lost volumes of natural resources. The paid Natural Resource Tax amount will be refunded or cleared against the subsequent period's payable Natural Resource Tax amount.”
Procedures, application for Natural Resource Tax exemption, deduction due to natural disasters stipulated in Article 56, Circular 80/2021/TT-BTC dated 29 September 2021 issued by the Ministry of Finance.
Prescribed in Clause 4, Article 10, Law on non-agricultural land use tax No. 48/2010/QH12, as below:
" 50% reduction of the payable tax amount is applied in the following cases:
... 4. Taxpayers who face difficulties due to force majeure circumstances if the value of damage related to land and houses on land accounts for between 20% and 50% of the taxable price.”
Procedures, application for non-agricultural land use tax exemption, reduction stipulated in Article 57, Circular 80/2021/TT-BTC dated 29 September 2021 issued by the Ministry of Finance.