Procedure for Requesting Personal Income Tax Reduction for Taxpayers Facing Difficulties Due to Natural Disasters, Fires, Accidents, or Severe Illnesses
What does the Personal Income Tax (PIT) reduction dossier include for taxpayers facing difficulties due to natural disasters, fires, accidents, or serious illnesses?
Based on Subsection 87 Section II Part 2 of the Administrative Procedures promulgated Decision 1462/QD-BTC of 2022; List of forms issued together with Circular 80/2021/TT-BTC and List of tax declaration dossiers issued together with Decree 126/2020/ND-CP, the PIT reduction dossier for taxpayers facing difficulties due to natural disasters, fires, accidents, or serious illnesses includes:
Case (1): Taxpayers facing difficulties due to natural disasters, fires
- Proposal document according to Form No. 01/MGTH in Appendix I - Tax Declaration Dossier Forms issued together with Circular 80/2021/TT-BTC dated September 29, 2021, by the Ministry of Finance;
- Minutes of determining the extent and value of damage to property by competent authorities and certified by the local commune government where the natural disaster or fire occurred according to Form No. 02/MGTH in Appendix I - Tax Declaration Dossier Forms issued together with Circular 80/2021/TT-BTC.
The authority that determines the extent and value of damage is the financial authority or the damage assessment agency;
- In case of damage to goods, the taxpayer provides the assessment minutes (assessment certificate) on the extent of damage from the assessment agency, which is legally responsible for the accuracy of the assessment certificate as per the law;
- In the case of damage to land and crops, the financial authority is responsible for the assessment;
- Documents determining compensation from the insurance agency or compensation agreement from the person causing the fire (if any);
- Documents related to expenses directly associated with dealing with natural disasters and fires;
- Personal income tax finalization declaration form No. 02/QTTT-TNCN in Appendix I - List of tax declaration dossiers issued together with Decree 126/2020/ND-CP and Appendix II - Tax Declaration Dossier Forms issued together with Circular 80/2021/TT-BTC dated September 29, 2021/TT-BTC (if the taxpayer requests PIT reduction for income from salary and wages).
Case (2): Taxpayers facing difficulties due to accidents
- Proposal document according to Form No. 01/MGTH in Appendix I - Tax Declaration Dossier Forms issued together with Circular 80/2021/TT-BTC;
- Document or report confirming the accident with certification from the police or a confirmation of the injury level from the medical authority;
- Documents determining compensation from the insurance agency or compensation agreement from the person causing the accident (if any);
- Documents related to expenses directly associated with dealing with the accident;
- Personal income tax finalization declaration form No. 02/QTTT-TNCN in Appendix I - List of tax declaration dossiers issued together with Decree 126/2020/ND-CP and Appendix II - Tax Declaration Dossier Forms issued together with Circular 80/2021/TT-BTC (if the taxpayer requests PIT reduction for income from salary and wages).
Case (3): Taxpayers with serious illnesses
- Proposal document according to Form No. 01/MGTH in Appendix I - Tax Declaration Dossier Forms issued together with Circular 80/2021/TT-BTC;
- Copy of the medical record or summary of the medical record or medical examination book according to the regulations of the law on medical examination and treatment;
- Documents proving medical expenses issued by the medical agency; or receipts for purchasing medicine with a prescription from the doctor;
- Personal income tax finalization declaration form No. 02/QTTT-TNCN in Appendix I - List of tax declaration dossiers issued together with Decree 126/2020/ND-CP dated October 19, 2020, of the Government of Vietnam and Appendix II - Tax Declaration Dossier Forms issued together with Circular 80/2021/TT-BTC (if the taxpayer requests PIT reduction for income from salary and wages).
How to apply for PIT reduction for taxpayers facing difficulties due to natural disasters, fires, accidents, or serious illnesses?
How to apply for PIT reduction for taxpayers facing difficulties due to natural disasters, fires, accidents, or serious illnesses?
Based on Subsection 87 Section II Part 2 of the Administrative Procedures promulgated Decision 1462/QD-BTC of 2022 as follows:
Step 1. Individuals prepare the tax reduction dossier and send it to the directly managing tax authority.
Step 2. The tax authority receives:
- In case the dossier is submitted directly at the tax authority or sent by post: the tax authority receives and processes the dossier according to regulations.
- In case the dossier is submitted via electronic transactions, the receipt, inspection, acceptance, and processing of the dossier (and returning the result if any) are carried out through the tax authority's electronic data processing system.
How long is the processing time for the PIT reduction procedure for taxpayers facing difficulties due to natural disasters, fires, accidents, or serious illnesses?
Based on Subsection 87 Section II Part 2 of the Administrative Procedures promulgated Decision 1462/QD-BTC of 2022 as follows:
- For standard dossiers: within 30 (thirty) days from the date of receipt of the complete dossier, the tax authority must issue a decision to reduce tax or notify the taxpayer of reasons for non-eligibility.
- For dossiers requiring on-site inspection by the tax authority: within 40 (forty) days from the date of receipt of the complete dossier, the tax authority must issue a decision to reduce tax or notify the taxpayer of reasons for non-eligibility.
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