Many policies to support taxpayers

The recent floods have caused heavy damage to many organizations, individuals, and businesses. In this situation, the tax sector has implemented many timely support policies, creating conditions for taxpayers to reduce their financial burden and quickly restore production and business activities.

Exemption and reduction of some taxes

According to Nguyen Ngoc Tu - Head of Khanh Hoa Provincial Tax, immediately after the natural disaster caused serious damage in many localities, implementing the direction of the Tax Department, Khanh Hoa Provincial Tax has focused on implementing solutions to support taxpayers. Accordingly, the Tax sector has deployed propaganda and guidance on policies to exempt and reduce some taxes to share difficulties and support the recovery of production and business. Specifically, for special consumption tax, affected taxpayers can have part of their tax obligations reduced in the year of damage, with a reduction of no more than 30% of the tax payable, depending on the actual loss. Regarding natural resource tax and non-agricultural land use tax, cases of damage caused by natural disasters affecting land or resources are considered for tax exemption or reduction; in particular, non-agricultural land use tax is exempted if the damage is over 50% of the taxable price and reduced by 50% for cases of damage from 20% to 50%. Enterprises, households and individuals renting land for agricultural, forestry and aquaculture production that suffer damage of 40% or more are exempted from land rent for the year of damage. This is a particularly important incentive for agricultural, forestry and fishery production units, the group most directly and severely affected by floods.

Tax officers guide taxpayers through procedures.

In parallel with tax exemption and reduction, the tax sector also creates favorable conditions for enterprises to deduct input value-added tax on taxable goods and services that are lost without compensation. Enterprises need to provide complete records and documents proving that the loss is not compensated to deduct tax according to regulations. In addition, many expenses that enterprises must spend to overcome the consequences of floods are also included in deductible expenses when determining taxable income for corporate income tax, including costs to repair damage, funding for community support programs, losses due to natural disasters that are not compensated... These regulations contribute to reducing the tax burden and encourage enterprises to quickly resume operations.

Facilitating procedures

The provincial Tax Department has promptly issued documents directing its affiliated units to step up propaganda and dissemination of support policies to taxpayers, and directly guide enterprises and business households to access preferential policies in accordance with the law. One of the important policies at this time is to extend tax payment for individuals and organizations that have suffered material damage due to natural disasters. The extension period can last up to 2 years from the tax payment deadline, helping businesses, households, and individuals have more resources for reproduction without having to worry about fines or late payment fees during the extension period. This is a practical measure to support heavily affected enterprises to maintain operations after the flood. In addition, enterprises that have difficulties due to natural disasters disrupting their operations and are unable to submit tax declarations on time will be considered for an extension to submit their dossiers, avoiding penalties in cases of force majeure. Information on support policies for enterprises affected by natural disasters is promptly publicized by the Provincial Tax Department on the website and social media channels, helping people and enterprises to easily look up and access. The provincial Tax Department also directed units under the Provincial Tax Department to closely coordinate with relevant agencies, arrange civil servants to directly guide taxpayers, and ensure that administrative procedures are resolved quickly and conveniently.

In the context of floods and storms having a profound impact on life and production, tax support policies not only help individuals and businesses reduce financial pressure, but also contribute to maintaining resources for economic recovery. “Taxpayers need to prepare complete documents proving the extent of damage, including requests, damage confirmations and related accounting documents, confirmed by competent authorities according to regulations. Proactive coordination with functional agencies and tax authorities will help taxpayers fully and promptly access support policies. In the coming time, the Tax Department will continue to closely monitor the actual situation, listen to feedback from businesses and people to promptly remove difficulties, and ensure that all support policies are implemented effectively and to the right subjects,” emphasized Nguyen Ngoc Tu.

Khanh Ha

Translated by T.T