According to the Notice of State Taxation Administration of The People's Republic of China on the Management of Income Tax Collection for Construction Enterprises Operating Across Regions (Guo Shui Han No.201KLOC-0/56), the project department established across regions under the direct management of the head office of a construction enterprise shall pre-distribute enterprise income tax to the location of the project according to 0.2% of the actual operating income of the project on a monthly or quarterly basis, and the project department shall pay the local competent tax authorities in advance. At the same time, if the head office only has a cross-regional project department, after deducting the enterprise income tax paid in advance by the project department, it will be paid on the spot according to its balance.

Therefore, when a construction enterprise goes out to operate a project across regions, it should pre-divide the enterprise income tax to the project location by the head office on a monthly or quarterly basis according to 0.2% of the actual operating income of the project, and then pay it on the spot according to the balance after deducting the enterprise income tax paid in advance by the project department. Therefore, the 0.2% enterprise income tax paid in advance by construction enterprises in different places at the time of annual settlement can offset the income tax payable. If the income tax payable by the head office after the year-end settlement is less than the tax paid in advance, the competent tax authorities of the head office shall handle the tax refund or deduct the enterprise income tax payable in the following years.