Supporting people in tax exemption and reduction

To help people and businesses overcome difficulties after storms No. 10 and 11, the General Department of Taxation under the Ministry of Finance has issued guidelines on tax exemption, reduction, and deferral, as well as on land rent and late payment penalties for organizations and individuals heavily affected by the natural disasters.

Specifically, businesses are fully exempted from non-agricultural land use tax if the land and assets on it suffer damage exceeding 50% of the taxable value. For leased land used for agricultural production or aquaculture, if the damage level is 40% or more, businesses are entirely exempted from annual land rent. During the suspension period for recovery, businesses are entitled to a 50% reduction in land rent and may defer tax payments for up to two years.

Enterprises, households, and individual business owners directly affected by natural disasters will receive up to a 30% reduction in special consumption tax payable for the year. For business households and individuals, the tax authority allows an extension for the payment of value-added tax (VAT) and personal income tax until December 31 of this year. In cases of severe damage, the deferral period may be extended for up to two years from the tax deadline, and taxpayers will not be fined or charged late payment interest during the deferral period.

In the context of post-disaster recovery, coordination among the state, the business community, and the people is a key factor in overcoming consequences, restoring production, and reviving livelihoods. Tax support measures will partly ease the financial burden, creating favorable conditions for people and businesses to restructure operations, restore resources, and contribute again to local and national economic development. Citizens and businesses are encouraged to maintain solidarity, stay informed, and proactively access timely support to overcome difficulties and move toward a sustainable recovery phase.

Phuong Dong