TAX DECLARATION

TAX DECLARATION AND DISTRIBUTION OF VAT, CIT, AND PIT IN PROVINCES

Pursuant to the Circular 80/2021/TT-BTC dated September 29, 2021 guiding the implementation of one article of the tax administration law and Decree No. 126/2020/ND-CP dated October 19, 2020, taking effect effective from January 1, 2022.

According to Circular 80, the procedures for declaring and paying VAT on external basis will no longer be available from January 1, 2022.

Enterprises having production and business activities in the provinces, they only need to declare and pay tax to the tax authorities where their head office is located; and at the same time distribute the amount of tax to be paid in each locality having business and production activities.

1. Declaration and distribution of VAT

Enterprises having production and business activities in the provinces, they only need to declare and pay tax to the tax authorities where their head office is located; and at the same time distribute the amount of tax to be paid in each locality having business and production activities.

- For construction activities, real estate transfer in other provinces. Enterprises need to allocate VAT at the rate of 1% of revenue according to the locality with construction works, transferred real estate and declare VAT directly in the locality on each arising or monthly basis. (form 05/GTGT).

- For computerized lottery business. The amount of VAT that needs to be paid for each province is equal to the amount of VAT payable from computer lottery business activities multiplied by the ratio (%) of actual ticket sales in each province to the total actual revenue. Enterprises declare centrally at the head office according to form 01/GTGT ​​and allocate VAT amounts to each locality according to Appendix No. 01-3/GTGT. Businesses are not required to file tax returns in the locality where the computerized lottery business is located.

- For affiliated units, the business location is the production facility. Enterprises shall make a centralized declaration at the head office according to form 01/GTGT ​​and allocate VAT amounts to each locality according to Appendix 01-6/GTGT. Enterprises do not have to submit tax declarations to local tax authorities where their affiliated units or business locations are located. The VAT amount allocated to each province is calculated as follows:

+ The amount of VAT payable to the province where the production facility is located is equal to 2% of the actual revenue generated ( for goods subject to the 10% VAT rate ) or 1% (for goods subject to the 5% VAT rate) provided that the total amount of VAT payable to the provinces does not exceed the amount of VAT payable at the head office.

+ In case the VAT for the province is allocated according to the above regulations, but the total VAT payable to the provinces is greater than the VAT payable at the head office, then the VAT payable to the province is allocated according to the ratio of actual revenue in each province over total revenue multiplied by the VAT amount payable at the head office.

- For hydroelectric plants located in multiple provinces, the VAT amount payable to each province is equal to the VAT amount of the hydroelectric plant multiplied by the ratio of the investment value of each province's hydroelectric plant part to the total investment value. investment of hydroelectric power plant.

- For dependent units that directly sell and use invoices registered by the dependent unit or registered by the taxpayer with the tax authority managing the dependent unit, fully track and account for value tax. increase output and input, the dependent unit declares tax and pays value-added tax to the directly managing tax agency of the dependent unit.

2. Declare and allocate corporate income tax.

- For real estate transfer activities in other provinces, the amount of corporate income tax payable to each province is equal to 1% of real estate transfer revenue in each province, corporate income tax is temporarily paid quarterly and finalized annually. Enterprises do not need to submit a declaration when real estate transfer activities arise to the local tax authority or head office.

- For computerized lottery business activities, the CIT amount payable to each province is equal to the CIT amount payable for computerized lottery business multiplied by the percentage of actual ticket sales revenue in each province above. Actual total ticket sales revenue.

- For an affiliated unit whose business location is a production facility, the CIT amount payable in each province where the production facility is located is equal to the CIT amount payable at the head office multiplied by the percentage of expenses. Actual costs incurred by each facility on total costs . The corporate income tax amount payable by the head office does not include the corporate income tax amount payable for corporate income tax incentive activities. The amount of CIT payable for activities eligible for CIT incentives will be determined according to the production and business results of the incentive activities.

- For hydropower plants located in many provinces, the CIT payable to each province is equal to the payable CIT amount of the hydroelectric power plant multiplied by the percentage of investment value of the portion of the hydropower plant in each of these provinces. total investment value of the hydroelectric plant.

3. Declaration and distribution of PIT

- Cases of allocation: PIT from salaries, wages paid at the head office to employees working at dependent units, business locations other than the province; Personal income tax on income from computer lottery prizes.

- Method of distribution: for incomes from salaries and wages, the allocated PIT amount is determined according to the actual withheld amount of individuals working in each province ; for income from winning lottery prizes, the PIT amount allocated is determined separately in each province where the prize is registered or distributed.

- Make a tax declaration at the head office according to form 05/KK-TNCN attached to the appendix of PIT allocation for each province according to form 05-1/PBT-KK-TNCN.