Business households and individuals that are not eligible for tax exemption upon natural disasters or conflagration

Individuals, business households and individuals that face difficulties caused by natural disasters, fires, accidents or fatal diseases are not eligible for tax exemption in Vietnam

As prescribed in Article 52 of the Circular No. 80/2021/TT-BTC:

"Article 52.- Procedures and cases in which tax authorities notify and decide tax exemption or reduction

1. Tax authorities shall notify and decide tax exemption or reduction in the following cases:

a) Exemption of personal income tax for the incomes specified in Clause 1, 2, 3, 4, 5, 6 Article 4 of the Law on personal income tax;

b/ Tax reduction under regulations for business individuals, households and individuals that face difficulties caused by natural disasters, fires, accidents or severe diseases and affecting their tax payment capacity;

c) Special excise tax reduction for taxpayers producing goods subject to special excise tax and meeting with difficulties due to natural disasters or unexpected accidents in accordance with the law on special excise tax;

d) Exemption and reduction of severance tax for taxpayers that suffer from natural disasters, fires, or accidents that cause damage to the natural resources that have been declared and paid;

dd) Tax exemption and reduction for non-agricultural land;

f/ Agricultural land use tax exemption or reduction under the Agricultural Land Use Tax Law and the National Assembly's resolutions;

g/ To exempt or reduce land rents, water surface rents and land use levy;

h/ Registration fee exemption.

..."

Basing themselves on the above-said provisions and Point b of Clause 1, business households and individuals that face difficulties caused by natural disasters, fires, accidents or serious diseases and affecting their tax payment capability shall enjoy tax reduction. Accordingly, business individuals and households are not eligible for tax exemption in Vietnam but are only eligible for a part of tax reduction depending on the severity of the violations.

Business households and individuals that are not eligible for tax exemption upon natural disasters or conflagration

Procedures for application for tax reduction in case business individuals or households face difficulties caused by natural disasters or fires

According to Clause 1 Article 54 of Circular No. 80/2021/TT-BTC, if the taxpayer face difficulties caused by natural disaster or conflagration, the following documents are required:

01/MGTH in Appendix I to this Circular.

- A record of property damage assessment made by a competent authority and certified by the local government of the commune where the natural disaster or conflagration occurs (form 02/MGTH enclosed herewith). Agencies competent to determine the extent and value of damage shall be finance agencies or agencies expertising the extent and value of property damage.

- A letter of attorney if the taxpayer authorizes a legal representative to follow the procedure.

- In case of damage in land or crops, the finance agency shall identify the damage.

- Papers evidencing the indemnity by the insurance agency or the compensation agreement of the fire-causing person (if any).

- Vouchers of payment of expenses directly related to the remedy of natural disasters or fires.

- A PIT finalization return, made according to form No.

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