Uni 21-09-2017 - Guidance on real estate transfer of EPEs

Official letter  58897/CT-TTHT dated 29/08/2017 of Ha Noi Taxation Department guiding  declaration, VAT rate, CIT rate  for real estate transfer of EPEs:

In case, the company is an EPE incurred real estate transfer (apartment transfer) for other individuals, if the transfer activity is appropriate with regulations:

-          For VAT:

+        The transfer is liable for VAT of 10%.

+        VAT computation amount is transfer price minus land cost to compute VAT.

-          For CIT:

+        Taxable income from real estate transfer is determined with transfer revenue minus cost of goods sold and other related costs as regulations of article 17 Charter V Circular 78/2014/TT-BTC.

+        CIT rate for transfer is 20%

+        The company conducts to declare CIT for real estate transfer with form 02/TNDN issued together with Circular 151/2014/TT-BTC.

-          For invoice: in case, the company has no VAT invoice, it contacts tax authority to grant one VAT invoice to prepare and hand over to buyer, the company pays tax before tax authority grants invoice, the company must not declare VAT for this with form 01/GTGT issued together with Circular 26/2015/TT-BTC.