Regarding Value added tax (“VAT”): The company must declare and pay VAT at the tax rate of 10% on the actual price of land lease rights transfer and assets attached to land based on the assignment contract.
Regarding Corporate income tax (“CIT”): The Company is not required to submit tax declaration dossiers quarterly but must pay provision tax quarterly and finalize CIT on real estate transfer as per Point b Clause 3 Article 17 of Circular 80/2021/TT-BTC issued by Ministry of Finance.
If the Company generates a profit from real estate transfer and incurs a loss from the business operation, the Company mustn’t offset the profit from real estate transfer against the loss from the production and business operations.