MoF makes Suntory Pepsi tax ruling

Pepsi and other sodas at a grocery store. - VNA Photo

HÀ NỘI — The branch of Suntory Pepsico Việt Nam Beverage Company in Cần Thơ City is subject to taxes as an expansion but not as a new investment, the Ministry of Finance has announced.

The decision was published in a recent document sent to the alliance between PepsiCo Inc. and Suntory Holdings Limited to respond to the company’s proposal for tax incentives as a new investment.

The ministry said that the branch of Suntory Pepsico in Cần Thơ City must be taxed as an expansion following the Law on Corporate Income Tax.

In  二00 八, HCM City–based Suntory Pepsico Việt Nam invested in a new a plant in Cần Thơ City’s Trà Nóc Industrial Zone, which was granted an investment certificate. Under the certificate, the plant in Cần Thơ would enjoy tax incentives as a new investment, including a corporate income tax rate at  一 五 per cent for  一 二 years of operation, exemption from the corporate income tax for three years and  五0 per cent discount in payable for the seven following years.

However, after an inspection in  二0 一 二, the General Department of Taxation said that the plant in Cần Thơ was the subject to tax as an expansion investment. Accordingly, the plant must pay an additional VNĐ 一 八 billion (US$ 七 八 九, 五00) in corporate income tax for  二0 一 二 and  二0 一 三 and a fine of VNĐ 三. 五 billion for late payment.

In April, the company sent a document to propose taxation as a new investment, as per the investment certificate. — VNS