French Casino Group and Thai Central Retail Corporation are believed to have wrongly interpreted the Vietnamese domestic law on corporate income tax regarding the taxation of capital gains from the transfer of Big C Vietnam supermarket chain.
|One of the shopping centers of the Big C Vietnam supermarket chain _ Photo: Internet|
This transfer is explained by Vietnam’s General Department of Taxation, in an official letter issued to Big C Thang Long International Trade and Supermarket Service Company, as in essence a capital transfer between real estate companies in Vietnam and companies in the Big C Vietnam chain, covering capital, assets, real estate and commercial advantage, and gains from such transfer transparently originate from Vietnam, regardless of whether such transfer is carried out within or outside Vietnam, and therefore subject to corporate income tax.
The General Department of Taxation requested Central Retail Corporation and Big C Vietnam to make corporate income tax declaration and payment for the transfer.
According to the General Department of Taxation, past 90 days after the transfer took place, the local authorities received no declaration of taxation of the deal, while under the Vietnamese law, the deadline for tax declaration is the 10th day after the transfer is officially completed.
Big C Vietnam has a network of 43 stores and 30 shopping centers nationwide, and earned net sales of USD 666 million in 2015.- (VLLF)