Central Group to shoulder the tax for buying Big C Vietnam?

14:45 | 29/07/2016
Vietnam’s General Department of Taxation has requested Central Group to pay the regulated tax arrears incurred by the transfer of Big C Vietnam supermarket chain, after failing to collect its dues from previous owner Groupe Casino.
Photo Duc Thanh

In a recently signed document sent to Big C Thang Long International Trade and Supermarket Service Company, one of the companies managing the supermarket chain, the department said the Central Group subsidiary that had received the transferred assets is responsible for paying the tax.

However, because the company is a foreign entity not subject to the Vietnamese Laws on Enterprises and Investment, companies currently managing the Big C Vietnam chain will have to file and pay the tax, because they are established according to Vietnamese laws.

The department said that in case these companies delay payment, besides having to pay the full tax amount, they will be fined for 0.05 per cent of the tax arrears a day if they are late for 90 days or less, and 0.07 per cent a day if the wait takes more than 90 days.

On April 29, Thai company Central Group became the new owner of Groupe Casino’s Big C Vietnam for $1.14 billion. 

The General Department of Taxation asked Groupe Casino to declare and pay tax within 10 days after the transfer, but 90 days after the request the company has yet to pay the  estimated VND3.6 trillion ($161.2 million).

Big C Vietnam has a network of 43 stores and 30 shopping centres around the country, and achieved a net sales of €586 million ($666 million) in 2015.

Late last year, the department collected VND1.9 trillion ($85 million) from the sale of METRO Cash & Carry Vietnam by German METRO GROUP to TCC Land International Pte., Ltd., a subsidiary of Thai company TCC Holding Co., Ltd.

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By By Ha Duy

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