Heineken Vietnam asked to pay US$40 million in tax arrears
The Hanoitimes - At present, Heineken has paid the full amount to state budget.
Heineken Vietnam is subject to pay VND917.2 billion (US$39.6 million) in tax arrears for a transaction worth VND4.8 trillion (US$207.8 million) in late 2018, according to the General Department of Taxation of Vietnam (GDT), VnExpress reported.
| Illustrative photo|
At present, Heineken has paid the full amount to the state coffers, stated the GDT.
In late 2018, Singapore - based Heineken Asia Pacific Pte transferred 100% stake at the Heineken Vietnam Brewery – Hanoi to Heineken Vietnam Brewery in a deal worth VND4.8 trillion (US$207.8 million).
On behalf of Heineken Asia Pacific Pte, Heineken Vietnam Brewery filed tax returns with the tax amount assessed to be over VND823 billion (US$35.61 million). But Heineken Asia Pacific later sent a document to Hanoi’s taxation authority asking to waive the amount under the agreement on double taxation avoidance between Vietnam and Singapore.
Under the agreement, foreign invested enterprises would be waived of certain taxes if its business address is at a country with a lower tax duty.
However, the GDT suggested the agreement sets an exemption in case of the value of immovable property is over 50% of the total transaction value, the tax obligation should be declared and paid at the contracting state, namely Vietnam.
After the GDT’s announcement, Heineken Vietnam Brewery paid the amount of VND917.2 billion (US$39.58 million) to Vietnam's budget, including VND823 billion (US$35.61 million) in tax and the remaining amount in penalty for late payment.
The collection of Heineken’s tax arrears helped bring the tax arrears collection in December to VND4.47 trillion (US$193.46 million).
In December, the GDT requested Coca-Cola Vietnam to pay back a tax amount of VND821 billion (US$35.44 million), citing the company’s false tax declaration leading to its underpayment of financial obligations
In the past, Coca-Cola Vietnam was suspected of transfer pricing due to its consecutive losses in many years while continuously expanding the business operation. At present, Coca-Cola Vietnam has paid the VND471 billion (US$20.33 million) in tax arrears.
In 2019, the tax authority retrieved an amount of VND18.8 trillion (US$811.3 million) from inspections.
- Vietnam inflation rate likely to drop below 4% in H2/2020
- Vietnam to stay among Asia’s fastest growing economies despite sharp slowdown: ADB
- Moody’s changes outlook for Vietnam’s banking system to negative on Covid-19
- Vietnam stock market remains operational as usual during social distancing period
- Vietnam stocks jump most in 11 years Wednesday amid global gains
- VND more resilient compared to regional peers amid Covid-19: VinaCapital
- Vietnam’s bond market grows 4.1% to US$53.6 billion in 2019
- Vietnam c.bank willing to sell forex as greenback soars
- Vietnam finance ministry waives fees for 6 securities services
- Vietnam accelerates disbursement of public investment doubles in Jan-Feb
April 3: Vietnam’s coronavirus cases hit 237, 86 recover
Vietnam to stay among Asia’s fastest growing economies despite sharp slowdown: ADB
No travel ban during national isolation period: Vietnam gov't speaker
Vietnam parliament set to ratify EVFTA in next sitting
Vietnam crude oil and natural gas production face downside risks on Covid-19
Hanoi ensures abundant supply of consumer goods in 15-day social distancing
Vietnam's factory activity drops to record low on Covid-19
Vietnam identifies three coronavirus hot spots, including largest hospital
Foreign companies express commitment to Vietnam efforts against Covid-19