Heineken urged to pay $39 million tax arrears

The beer producer failed to submit the tax amount when Singapore-headquartered Heineken Asia Pacific signed a contract to transfer entire stake in Heineken Vietnam Brewery Hanoi to Heineken Vietnam Brewery a year ago, the Vietnamese authority said.

After completing the $202.4-million deal, Heineken Vietnam Brewery submitted corporate income tax declaration of nearly $35 million.

Later, Heineken Asia Pacific sent Hanoi Tax Department a proposal for a exemption based on the Agreement on avoidance of double taxation signed between governments of Vietnam - Singapore.

However, officials from General Department of Taxation explained that Heineken is not eligible for the policy since the agreement clearly states that deal with 50% value related to real estate should fulfill tax obligations.

In this deal, real estate value accounted for more than 50% of the total value of transferred assets. Therefore, Heineken has to pay tax, officials said.

Vietnamese tax inspectors said while transferring ownership outside the territory, there would be a dispute of tax right between countries that have signed the Agreement to avoid double taxation.

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Source: VTC News