Central Group Pays $17 Million in Transfer Tax to Vietnam’s Taxman

Tuan Minh

16:29 02/08/2016

BizLIVE - Central Group has paid $17 million in transfer tax to Vietnamese tax authorities three months after the acquisition of the Big C retail chain.

Central Group Pays $17 Million in Transfer Tax to Vietnam’s Taxman

A Big C outlet in Tan Phu district, HCM City. Photo: Tuoi Tre newspaper.

Central Retail Corp., a subsidiary of Thailand’s Central Group, has paid 380 billion dong ($17 million) worth of tax to Vietnam’s General Department of Taxation for the acquisition of the Big C grocery chain, the Tuoi Tre (Youth) newspaper reported, citing the Ministry of Finance.
The firm will pay the remaining 1.6 trillion dong ($71.65 million) to complete a sum of two trillion dong ($89.5 million) it had declared to local tax authorities.
The payment was made after the General Department of Taxation repeatedly asked the parties involved in the Big C transaction to pay the transfer tax, otherwise it will impose a fine or block the transaction.  
France’s Casino Group announced the sales of its Vietnam operations to Central Group for $1.04 billion in late April, part of a deleveraging plan.
Since the end of 2015, Thai firms have bought out a number of retail chains in Vietnam, according to the finance ministry.
The landmark deal was the sale of the Metro chain by Germany’s Metro Cash & Carry Company to TCC Land International Pte., Ltd, a subsidiary of Thailand’s TCC Holding.
Metro Cash & Carry Company paid 1.91 trillion dong ($85.6 million) in transfer tax to the Vietnamese taxman.