"Despite making a full payment in line with the tax assessment, Heineken Asia Pacific (Heineken APAC) does not agree with the basis on which it was issued," the company stated Tuesday.
The firm has initiated proceedings under Vietnam-Singapore Double Taxation Treaty terms to seek clarification over the taxman’s decision, it said.
Heineken added it is committed to conduct business with integrity and with respect for the laws and regulations of countries in which it operates.
The statement follows the General Department of Taxation decision to charge the Dutch beer giant VND917.2 billion ($39.7 million) in back taxes and fines for a 2018 transaction.
Singapore-based Heineken APAC at the end of 2018 struck a deal valued at over VND4.8 trillion ($207.7 million) with Heineken Vietnam Brewery. Accordingly, the Singaporean firm transferred its entire Vietnamese subsidiary stake to the latter.
Tax payable on the deal came to VND823 billion ($35.6 million), but Heineken Asia Pacific claimed it was exempt from paying it under the double taxation agreement between Vietnam and Singapore.
However, the General Department of Taxation ruled the tax had to be paid because real estate value was over 50 percent of assets involved in the deal. It also charged extra for late payment.
Vietnam collected VND18.8 trillion ($813 million) last year in back taxes and fines, according to the department.
Từ vựng liên quan
Tin tức liên quan
Budget deficit sees 34-pct surge
economy | 388666493Vietnam’s budget deficit widened by 34 percent in 2020 but remained within the limit set by the National Assembly, Minister of Finance Ho Duc Phoc has said.
HCMC's largest garment market delays rent hike after vendors' threat to leave
economy | 393056492Satraseco, operator of HCMC's largest garment market, will go ahead with a 50-130 percent hike in rents for stalls, but has put it off until next year.
Singapore makes major heroin bust at Malaysia border
world | 388066497Singapore's anti-narcotics agency on Friday announced the seizure of nearly 18 kg (634 oz) of heroin in a car arriving from neighboring Malaysia, in what local media said was the biggest haul of its kind in the city-state in two decades.
Boxing great Muhammad Ali dead at age 74 - media reports
world | 333066505Former world heavyweight champion Muhammad Ali, whose record-setting boxing career, unprecedented flair for showmanship and controversial stands made him one of the best-known figures of the 20th century, died on Friday aged 74, media reports said.
Hanoi nude exhibition does not go far enough, artists say
life | 274416518While the destigmatization of nudity is welcome, exhibition organizers still played it safe, they feel.
N.Korea reports 8 more dead, medicine supply issues amid Covid outbreak
world | 386796495North Korea on Monday reported eight more deaths from “fever” after recently announcing its first Covid cases, with the military deployed to resolve “supply of medicines” issues.
US, Japan first ladies: both unconventional yet poles apart
world | 325646502The task of hosting Japanese first lady will fall to Melania during the Abes' stay in Trumps' Florida Mar-a-Lago retreat.
Dubious move to earn crypto copycats emerge in Vietnam
industries | 389466495Hai Hoang was invited to join a ‘make love to make money’ project, a copy of the increasingly popular ‘move to earn’ crypto trend.
No fish, no school: 1,000 students forced to stay at home in central Vietnam
news | 308746490Fishermen are demanding authorities pay school fees after mass fish deaths.
Trade ministry seeks sanction for private firm to install transmission line
economy | 307126498The Ministry of Industry and Trade wants a private company to install a power transmission line in the central region, hitherto a state monopoly.