The Issue Of Cross Regional Construction Enterprise Income Tax Is Clear.

The State Administration of Taxation said in May 4th that the Bureau issued the notice on the management of the income tax collection for construction enterprises across regions, and clearly pointed out that the cross regional operation of construction enterprises should pay the enterprise income tax in advance on the spot. The project department directly under the two or two branches of construction enterprises should be aggregated to the two level branches for unified accounting. The notice shall come into force on January 1, 2010.

The notice is clear that the trans regional operation construction enterprises that implement the general sub unit system shall calculate and pay enterprise income tax according to the "unified calculation, hierarchical management, pre paid in place, consolidated liquidation and fiscal adjustment".

The project department directly under the two or two subordinate branches of a construction enterprise (including the engineering headquarters and contract section with the same nature as the project department) shall not prepay the enterprise income tax in advance, and its operating income, staff wages and total assets should be aggregated to the two level sub branches and unified accounting. The two level branches shall prepay the enterprise income tax according to the prescribed method.

The cross regional establishment project department directly managed by the general enterprise of the construction enterprise shall, according to the actual operating income of the project, be divided into enterprise income tax by the head office to the location of the project on a monthly or quarterly basis, and the project department shall prepay the competent tax authorities in charge of the project to 0.2%.

The circular points out that the project Department of cross region operation (including the project department under the management of the lower level two branches) shall issue the certificate of Tax Administration for the management of the outbound business issued by the competent tax authority at the place where the project is located. If the above proof is not provided, the competent tax authority at the place where the project department is located shall supervise and urge it to make a replacement within a specified time limit. At the same time, the project department shall provide the local competent tax authorities with the supporting documents issued by the head office to prove that the project department belongs to the general or two level branches.