Thailand’s Central Group pays nearly $25 million in Big C deal transfer tax

VietNamNet Bridge - Central Group, a conglomerate from Thailand, has paid VND500 billion (nearly $25 million) of the total VND2,034 billion (nearly $100 million) of taxes that it has to pay to the Vietnamese government, including transfer taxes of VND1,914 billion for its acquisition of Big C supermarket chain and VND120 billion of taxes incurred during its production and business process since 2008. 

Thailand’s Central Group pays nearly $25 million in Big C deal transfer tax, vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam

The group will pay the remaining taxes in August, according to the General Department of Taxation.

According to the General Department of Taxation, Thai Central Group, which recently acquired the supermarket chain Big C from the Casino Group (France), declared and paid part of the transfer tax.

Accordingly, the Central Group declared the total amount of taxes of VND2,034 billion, including VND1,914 billion of transfer tax and VND120 billion of taxes incurred in production and business activities of Big C since 2008.

The VND120 billion would have been paid by Casino Group but the Thai conglomerate has acquired Big C system so it has to inherit all the rights and obligations of the previous investor.

The Central Group has temporarily paid VND500 billion in taxes (including VND120 billion tax duties in 2008 and VND380 billion of transfer tax) of to total of more than VND2,000 billion taxes that it has to pay. It committed to pay the rest in August.

Explaining the delay in payment of transfer tax for the Big C deal, a tax official said during the negotiation process for the deal, the  two sides had not clarified which party would have to pay the tax duties of VND120 billion. However, at the request of the relevant authorities in Vietnam, just when the Central Group fulfills its tax obligations, the transfer of the ownership of Big C sytem will be fully implemented.

The tax agency is also inspecting costs and other tax obligations of the Big C system.

The Big C supermarket chain in Vietnam consists of 32 supermarkets, hypermarkets and trade centers spreading many provinces and cities. 

The transfer of Big C system between Casino Group (France) and Central Group (Thailand) took place in April 2016 with a total transaction value amounted to Eur920 million, equivalent to $1, 05 billion.

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Na Son

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