The case of the petition of Ng.H Development Investment Joint Stock Company in Official Dispatch No. 20/2023/CV-NH dated October 12, 2023 on instructions for handling cases of itinerant tax declaration for out-of-province business activities.

Nghe An Tax Department replied : Point b, Clause 1, Article 11 of Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government detailing a number of articles of the Law on Tax Administration specifically stipulates the following:

About tax filing location :

Taxpayers shall comply with the regulations on the location for submitting tax declaration dossiers as prescribed in Clauses 1, 2 and 3, Article 45 of the Law on Tax Administration and the following regulations:

+ The place for submitting tax declaration dossiers for taxpayers with many activities and businesses in many provincial-level localities as prescribed in Point a and Point b, Clause 4, Article 45 of the Law on Tax Administration is the tax authority where the business activities are carried out other than the province or city where the head office is located in the following cases:

+ Declaring value added tax on real estate transfer activities of infrastructure investment projects, houses for transfer (including cases of collecting advance payments from customers according to progress) at the place where real estate transfer activities take place.

Compared with the above regulations, the place to submit tax declaration dossiers for taxpayers with many activities and businesses in many provincial localities must declare at the tax authority where the business activities are carried out in a different province or city than the place where the head office is located.

- Regarding tax declaration, tax calculation, tax settlement , allocation and payment of corporate income tax : Declaring value added tax on real estate transfer activities of infrastructure investment projects, houses for transfer (including cases of collecting advance payments from customers according to progress) at the place where real estate transfer activities take place". In addition, according to Article 17 of Circular No. 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance guiding the implementation of a number of articles of the Law on Tax Administration and Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government detailing a number of articles of the Law on Tax Administration, the cases of allocation include a number of cases, including real estate transfer activities...

Method of allocating corporate income tax payable for real estate transfer activities: The amount of corporate income tax payable for each province where real estate transfer activities are conducted is provisionally paid quarterly and finalized equal to (=) the revenue for calculating corporate income tax of real estate transfer activities in each province multiplied (x) by 1%.

- Tax declaration, tax settlement, tax payment: For real estate transfer activities, tax declaration and provisional tax payment must be made quarterly. Taxpayers do not have to submit quarterly tax declarations but must determine the amount of provisional tax paid quarterly according to the provisions of Point b, Clause 2 of this Article to pay corporate income tax to the State budget for each province where real estate transfer activities take place.

Regarding tax settlement: Taxpayers declare and settle corporate income tax for all real estate transfer activities according to form No. 03/TNDN, determine the amount of corporate income tax payable for each province according to the provisions at Point b, Clause 2 of this Article in the appendix of the table of allocation of corporate income tax payable for localities where revenue from real estate transfer activities is enjoyed according to form No. 03-8A/TNDN issued with Appendix II of this Circular for the direct tax management agency; pay money into the state budget for each province where real estate transfer activities are carried out according to the provisions at Clause 4, Article 12 of this Circular.

The amount of provisional tax paid during the year in the provinces (excluding the amount of provisional tax paid for revenue from implementing infrastructure investment projects, houses for transfer or lease-purchase, with prepayments from customers according to progress, but this revenue has not been included in the revenue for calculating corporate income tax in the year) is deducted from the amount of corporate income tax payable from real estate transfer activities of each province on form No. 03-8A/TNDN issued with Appendix II of this Circular. If not fully deducted, it will continue to be deducted from the amount of corporate income tax payable from real estate transfer activities according to the final settlement at the head office on form No. 03/TNDN issued with Appendix II of this Circular.

In case the amount of tax provisionally paid quarterly is less than the amount of tax payable according to the tax settlement on the tax settlement declaration at the head office on form No. 03/TNDN issued with Appendix II of this Circular, the taxpayer must pay the remaining tax to the locality where the head office is located. In case the amount of tax provisionally paid quarterly is greater than the amount of tax payable according to the tax settlement, it is determined as an excess tax payment and handled according to the provisions of Article 60 of the Law on Tax Administration and Article 25 of this Circular.

Based on the above provisions, Ng.H Development Investment Joint Stock Company is the investor implementing the urban area project in Nghe An province. The Company shall declare VAT according to the provisions of Article 11, Decree 126/2020/ND-CP of the Government; declare corporate income tax according to the provisions of Article 17 of Circular 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance.

Regarding the procedure to transfer VAT and CIT payable in Nghe An from the first quarter of 2021 to the end of the second quarter of 2023 that have been paid to the Hanoi Tax Department, the company is requested to contact the Hanoi Tax Department for instructions and handling according to regulations./.