According to point c clause 2 Article 17 of Circular No. 80/2021/TT-BTC, in case a company has a branch that is a factory located in a province other than the province in which the company’s head headquarter is located, it is required to distribute (pay) tax at the locality where the branch is located.
The CIT to be distributed to the locality where the branch is located shall equal payable CIT on business operation multiplied by (x) the ratio (%) of cost of the branch to total cost of the company.
In which, it is required to note that the payable CIT on business operation does not include CIT on operations eligible for CIT incentives.
The cost as the basis for distribution of tax shall be actual cost incurred in the tax period and do not include cost of operations eligible for CIT incentives.
|Published||Vietlaw's Newsletter No. 568|