Vinhomes, banks among top tax payers

Banks dominated the list of biggest tax payers on Vietnam’s bourses in 2021, while the champion is Vingroup, the country’s largest listed company by market cap.

Vingroup’s consolidated after-tax loss mounted to VND7.52 trillion (nearly $330 million) last year, but the conglomerate’s corporate income tax (CIT) payment ranked first at nearly $434 million, down 3.7 percent year-on-year.

Most of Vingroup’s tax payment came from its subsidiary Vinhomes - the most profitable business among listed firms last year. The number 1 real estate developer in Vietnam gained after-tax profit of $1.72 billion and paid $393 million in CIT, up 2.1%.

Next to Vinhomes are banks, with Vietcombank leading the pack ($239 million), followed by Techcombank ($212 million), Vietinbank ($148 million), MBBank ($145 million), VPBank ($128 million), BIDV ($119 million), ACB ($105 million), HDBank ($71 million) and VIB ($70 million).

While the net profit of leading steel-maker Hoa Phat also topped $1 billion, its CIT payment in 2021 was only $125 million, 68 percent less than Vinhomes, given the tax incentives it has enjoyed for many years.

In 2020, the CIT incentive for Hoa Phat’s member companies was up to $53.5 million, a 3.3-fold rise against 2019.

Though the after-tax profit of Vinamilk, Vietnam’s leading dairy company, decreased 5.4% to $466 millionin 2021, its CIT payment increased slightly by 0.4% to $102 million.

Two companies having a significant reduction in CIT payment against 2020 are Sabeco and Vietnam Rubber Industry Group, with a decrease of 15.1% and 20.9%, respectively.

The after-tax profit of Sabeco, Vietnam’s biggest brewer, declined 20.4 percent year-on-year to $172 million.

Vietnam Rubber Industry Group, the country’s top rubber maker, achieved an after-tax profit of $245 million, up 10% compared to 2020 and 23% higher than its year plan.