On June 7, 2024, the General Department of Taxation issued Official Letter No. 2445/TCT-CS regarding tax policies.
The General Department of Taxation provided the following opinions on this matter:
Clause 27, Article 3 of the Law on Tax Administration No. 38/2019/QH14 dated June 13, 2019, and Clause 1, Article 3 of Decree No. 126/2020/ND-CP dated October 19, 2020, issued by the Government detailing certain articles of the Law on Tax Administration, stipulate that taxpayers suffering material losses include those affected by natural disasters, catastrophes, epidemics, fires, unexpected accidents, and other force majeure circumstances such as war, riots, strikes causing cessation of production and business activities, or risks not attributable to the taxpayer's subjective responsibility, rendering the taxpayer financially incapable of meeting state budget obligations.
Article 6 of Circular No. 78/2014/TT-BTC dated June 18, 2014, by the Ministry of Finance on corporate income tax (amended and supplemented by Article 4 of Circular No. 96/2015/TT-BTC dated June 22, 2015, by the Ministry of Finance) provides guidance on deductible and non-deductible expenses when determining taxable corporate income. It includes guidance on expenses related to the value of losses due to natural disasters, epidemics, fires, and other force majeure circumstances that are not compensated.
