Tax agency to inspect underperforming foreign firms

The General Department of Taxation has been reviewing press information about foreign firms continuously reporting loss to have inspection plan in the upcoming time.

The general department has required tax agencies to focus on inspection over these companies.

According to articles published on Sai Gon Giai Phong Newspaper in May and June and some other newspapers, many beverage and fast food companies have continuously reported loss.

Of these, Lotteria has invested in Vietnam for over 13 years with annual earnings reaching VND1,300-1,500 billion (US$56-64.23 million) but kept reporting loss. It reached VND135 billion in 2016 and VND20 billion in 2017. As of 2017, the loss totaled VND430 billion nearing the company’s chartered capital.

Continuous loss report has also occurred at other fast food chains such as Jollibee, KFC and McDonald’s and milk companies importing high grade products for sale at high prices.

Despite non-stop loss, these firms have still existed, developed, expanded production and trading and loudly advertised their brand names. So the public has raised concern about transfer pricing and wanted to make it clear.