Enterprises, household businesses and individuals affected by the Typhoon Yagi in 26 cities and provinces in the northern region of Vietnam will be eligible for excise tax reduction of up to 30% this year, according to Vietnam’s General Department of Taxation.

The reduction will not exceed the value of damaged assets after compensation.

Enterprises can deduct the value of losses incurred from natural disasters when calculating taxable income.

Businesses and taxpayers stricken by the natural disaster are granted a tax payment extension of up to two years, along with exemptions from administrative fines and late payment fees.

The tax incentives are aimed at supporting businesses and tax payers to overcome the typhoon aftermaths, stabilize life and restore production and trade.

For non-agricultural land use tax, tax payers  can enjoy a reduction of 50% of the payable amount if the damage amounts to 20-50% of the taxable value.

The Ministry of Planning and Investment estimated property damage caused by the typhoon at around VND40 trillion ($1.629 billion).

The ministry forecast that the typhoon and its aftermath could damage economic growth, pushing it 0.15 percentage point lower compared to the growth scenario of 6.8-7% previously expected for the full year.

It would take many years for enterprises and household businesses to recover trade and production activities affected by the typhoon, according to the ministry.