Metro Vietnam’s losses under the microscope
An official from the General Department of Taxation said the decision was made because many businesses were enjoying investment incentives but were still reporting losses, while others had declared losses for many years but had continued to invest in Vietnam.
Metro began operating in Vietnam in 2002. The tax authority conducted inspection of the company several times from 2002 to 2011. During this period, Metro reported losses.
From the initial investment of $78 million when it opened its first supermarket in Ho Chi Minh City, Metro Vietnam expanded to 19 centers in 14 provinces. Its revenue continuously grew. In 2013 it was 24 times higher than that in 2002, at more than VND14.7 trillion ($735 million).
However, the company topped the list of loss-incurring foreign-invested firms. In over 12 years in Vietnam, only in 2010 did it report a profit, with VND116 billion (over $5 million).
During this period of time, Metro Vietnam paid only value-added tax, business rate, land-use charges and contractor taxes. It has never paid corporate income tax and is one of the foreign-invested firms suspected of performing transfer pricing.
In addition, the tax body will closely monitor the transfer affairs of Metro Vietnam to collect capital transfer taxes.
