Core Viewpoint - The article emphasizes the importance of accurate tax prepayment for construction companies operating across regions, highlighting potential tax risks if not managed properly [1][2]. Tax Prepayment Requirements - Construction companies providing services across regions must prepay value-added tax (VAT) and corporate income tax at the project location, ensuring compliance and avoiding double taxation [2]. Case Study Analysis - A construction company, registered in City A, established a project department in County B and received a total construction income of 1 million yuan, with subcontracting payments of 550,000 yuan. The company incorrectly prepaid VAT based on the total income instead of the net amount after deducting subcontracting costs [4][6]. VAT Calculation - According to regulations, the company should calculate VAT based on the net income after deducting subcontracting payments. The correct VAT prepayment should be calculated as follows: (1,000,000 - 550,000) / (1 + 9%) × 2% = 8,300 yuan [7][8]. Additional Tax Fees - The company is also required to pay additional taxes based on the VAT amount. The calculation for additional tax fees is 8,300 × (5% + 3% + 2%) = 800 yuan [9]. Corporate Income Tax Calculation - The corporate income tax for the project should be calculated as 1,000,000 / (1 + 9%) × 0.2% = 1,800 yuan, which must be prepaid to the local tax authority [10][11]. Documentation and Record-Keeping - It is crucial for the financial personnel of construction companies to collect and organize financial data accurately, submit the necessary tax forms, and maintain a detailed record of all income, subcontracting payments, and tax prepayments for compliance and audit purposes [12].