Korean chaebol Daewoo E&C's Vietnam subsidiary fined for tax errors

THT Development Company Ltd., under South Korean chaebol Daewoo E&C and the developer of the $1.3 billion Starlake Hanoi urban area project, has been retroactively taxed and fined for tax violations by the Hanoi Tax Department.

The total sum includes VND3.45 billion ($135,490) in additional taxes, a fine of VND760.46 million ($29,870), and VND343.63 million (13,500) in late payment interest.

In a document signed on February 26, the department (now known as the Tax Department for Zone 1), said the firm made some violations related to filing invoices of businesses not operating at the registered locations.

In 2023, THT Development filed 28 invoices provided by eight businesses not operating at the registered locations.

After recalculation, the tax department said THT Development must pay additional taxes of VND3.45 billion ($135,490), including VAT and corporate income tax (CIT).

For the wrong filings, it must pay a fine of VND760.46 million ($29,870). The late payment interest is VND343.63 million (13,500).

Starlake Hanoi is a mega property project, covering over 160 hectares in the northern area of Hanoi. The project, located at one of the most expensive land sites in Hanoi, started construction in 2014 and completed its first phase in 2024. The project is now progressing its second phase.

THT Development has been selling sub-projects of Starlake Hanoi to other investors, such as the CMC innovation area, Landmark 55 hotel-office-commercial center complex, and many land lots.