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Official Letter No. 4328/CT-CS dated 10 October 2025 of the Tax Department guiding supporting solutions for organizations, individuals, and enterprises suffering losses due to Storms No. 10, 11 and post-storm flooding

– Tax payment extension:

• Eligible cases for extension: Entities that suffer serious damage directly affecting their production and business activities due to force majeure events. (Force majeure includes: taxpayers suffering serious damage due to natural disasters, catastrophes, epidemics, fires, unexpected accidents; and other force majeure cases as prescribed by the Government.)
• Extension duration: No more than 02 years from the tax payment due date.
• Requirements for extension: Taxpayers eligible for tax payment extension must prepare and submit a tax extension application dossier to the directly managing tax authority.

– Late payment interest exemption:

According to Article 23 of Circular No. 80/2021/TT-BTC dated 29 September 2021 by the Ministry of Finance, which provides guidance on certain articles of the Law on Tax Administration and Decree No. 126/2020/NĐ-CP dated 19 October 2020 of the Government, procedures for exemption from late payment interest are specified.

–Exemption from administrative penalties on tax administration violations:

Taxpayers who are fined for administrative violations in tax management but suffer damage under force majeure circumstances as stipulated in Clause 27, Article 3 of the Law on Tax Administration shall be exempted from penalties. The total amount of exemption shall not exceed the value of damaged assets or goods.

–VAT deduction:

• In case where enterprises or economic organizations subject to VAT under the deduction method suffer losses due to flooding, they may deduct input VAT that was not compensated on taxable goods and services which were damaged. Businesses must have complete documentation and evidence proving the uncompensated losses in order to be eligible for VAT deduction.
• Imported goods donated or sponsored for disaster prevention, relief, and recovery are not-subject to VAT. The receiving agencies and organizations include: Ministries, ministerial-level agencies; People’s Committees of provinces and centrally-run cities; and the Vietnam Fatherland Front Committees at provincial and city levels.
• The receiving agencies/organizations shall accept donated goods upon the proposal of donors (organizations/individuals) and issue official documents of receipt. These documents serve as the basis for customs authorities to apply the VAT policy on not-subject to VAT at the import stage.

–Corporate Income Tax (CIT):

Enterprises are allowed to include the following expenses as deductible expenses when determining taxable income for CIT purposes, if they meet the conditions specified in Clause 1, Article 9 of the Law on CIT:

• The value of losses caused by natural disasters, epidemics, and other force majeure events that are not compensated (Point a, Clause 2, Article 9 of the CIT Law).
• The value of losses from natural disasters, epidemics, fires, and other force majeure events that are not compensated shall be determined as the total value of the losses minus (–) the amount compensated by insurance companies or other organizations and individuals, in accordance with the law.
• Welfare expenses directly paid to employees, such as support for employees’ families affected by natural disasters, war, accidents, or illnesses (Point 2.30, Clause 2, Article 6 of Circular No. 96/2015/TT-BTC). The total amount of such welfare expenses shall not exceed the average actual monthly salary in the tax year of the enterprise.
• Donations for education, healthcare, and culture; donations for disaster and epidemic prevention and recovery; and for building “great solidarity” houses, charity houses, and houses for social policy beneficiaries, in accordance with legal regulations (Point b5, Clause 1, Article 9).
• The value of losses caused by natural disasters, epidemics, and other force majeure events that are not compensated (Point b7, Clause 1, Article 9).

–Special Consumption Tax Reduction:

Taxpayers manufacturing goods subject to special consumption tax (SCT) who face difficulties due to natural disasters or unexpected accidents are eligible for SCT reduction. The reduction amount is based on the actual damage caused by such events but shall not exceed 30% of the payable SCT for the year in which the damage occurred and shall not exceed the value of the damaged assets after compensation (if any).

–Natural Resources Tax Exemption or Reduction:

Taxpayers subject to natural resources tax who suffer from natural disasters, fires, or unexpected accidents that cause losses to declared and taxed resources may be considered for tax exemption or reduction for the lost resources. If the tax has already been paid, it shall be refunded or deducted from the natural resources tax payable in the subsequent period.

–Non-Agricultural Land Use Tax Exemption or Reduction:

• Full exemption applies to taxpayers facing difficulties due to force majeure events if the value of damage to land and structures on land exceeds 50% of the taxable value.
• 50% tax reduction applies to cases where the value of damage to land and structures on land is between 20% and 50% of the taxable value, and the taxpayer is facing difficulties due to a force majeure event.

–Land Rent Exemption or Reduction:

• Land rent reduction applies to land users who are leased land by the State with annual rental payment for production or business purposes (excluding land used for agricultural, forestry, aquaculture, or salt production purposes) and are forced to suspend operations to recover from natural disasters, fires, or other force majeure events. This is implemented under Clause 4, Article 5 of Decree No. 230/2025/NĐ-CP dated 19 August 2025, which stipulates other cases eligible for land rent or land use fee exemption or reduction under Clause 2, Article 157 of the 2024 Land Law.
• According to Article 6 of Decree No. 230/2025/NĐ-CP, a 30% land rent reduction for the year 2025 is applied to land users who are leased land by the State under annual payment terms (as specified in Article 4 of the 2024 Land Law) in order to support citizens and enterprises in production and business recovery.