On May 31, 2024, the Bac Giang Provincial Tax Department issued Official Dispatch No. 3920/CTBGI-TTHT regarding the issuance of invoices and payment of taxes on real estate transfers.
- In the case where the Company has a plot of land within an investment project that has been granted an Investment Registration Certificate by the Management Board of Industrial Parks, and this plot has been paid for land rental to the leasing unit and issued a Land Use Right Certificate, separate from the land the company is currently using. Now, due to no need for use, the company transfers this plot of land (transfers the land use right) to another company, provided that the transfer is permitted by the competent state authority. When transferring the land use right, the company must issue an invoice in accordance with Article 4 of Decree No. 123/2020/NĐ-CP dated October 19, 2020, by the Government.
- Regarding tax payment: The activity of transferring the land use right is not subject to VAT but must declare and pay corporate income tax (CIT) as prescribed. The method for determining the CIT payable for this activity should follow the guidance in Articles 16 and 17 of Circular No. 78/2014/TT-BTC dated June 18, 2014, by the Ministry of Finance.
- Regarding the tax payment deadline: The company should follow Article 55 of the Tax Administration Law No. 38/2019/QH14 dated June 13, 2019, by the National Assembly.
