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| A corner of Honda Vietnam factory in northern Vinh Phuc Province. The firm will have to pay tax arrears to the State budget. — Photo Duc Tho |
HA NOI (Biz Hub) — Honda Vietnam would have to pay VND182 billion (US$8.54 million) in tax arrears after the tax department discovered violations at the company, a finance ministry official said.
This is the second firm that will be required to pay tax arrears this month. The first one is METRO Cash & Carry Vietnam, which has to pay VND507 billion ($23.8 million) as additional tax to the State budget.
At a monthly press conference held by the Government on April 25, Deputy Minister of Finance Do Hoang Anh Tuan said Honda Vietnam was on the list of businesses that showed signs of violating the country's regulations, which would be inspected and examined by the tax department.
Tuan did not give the details of Honda Vietnam's violations, but said there was still a "fairly large" amount that had not been admitted by the firm.
However, he said the relevant sectors had been implementing measures, as per the country's regulations, to collect tax arrears from the company.
Honda Vietnam entered the Vietnamese market in 1998. It is a joint venture of three partners, which are Japanese Honda Motor, Thailand Asian Honda Motor and Vietnam Engine and Agricultural Machinery Corporation, with the capital contributions being 42 per cent, 28 per cent and 30 per cent, respectively.
The firm has two factories in the northern Vinh Phuc Province, with a total capacity of producing 1.5 million units per year. They have created nearly 5,000 jobs.
The firm built an auto manufacturing factory in 2005 with an investment capital of about $60 million. It has more than 400 workers and makes about 10,000 units per year.
According to the online VnExpress.net, in the fiscal year 2014 that concluded in May last year, Honda Vietnam announced that it earned VND55 trillion ($2.58 billion) in revenue, contributing more than one per cent of Viet Nam's GDP. However, it did not reveal its profit figures. — VNS