Tax authority flags 302 companies with prolonged losses for inspection

Tax authority flags 302 companies with prolonged losses for inspection

Vietnam’s tax authority has identified 302 enterprises showing signs of prolonged losses and thin margins for targeted inspection, as part of efforts to strengthen oversight and safeguard state revenues.

Vietnam’s tax authority is intensifying oversight of enterprises reporting sustained losses and low profitability. Source: AI-generated

The Tax Department issued an official letter on March 31, requesting tax authorities nationwide to intensify management of businesses that have reported losses over multiple years or maintained unusually low profitability.

According to the authority, a number of solutions were implemented in 2025 to enhance tax administration, including measures targeting enterprises declaring repeated losses and thin margins. While these efforts delivered positive results, many businesses continue to exhibit prolonged loss-making positions, raising concerns over potential revenue leakage.

The latest directive requires tax departments at all levels to step up communication and guidance to ensure taxpayers declare fully, accurately, and transparently in line with regulations. Authorities are urged to strengthen warnings and enforcement against violations, particularly those related to transfer pricing and misreporting aimed at reducing tax obligations.

Tax agencies are also tasked with reviewing data and conducting risk analysis to identify enterprises with abnormal tax declarations. Companies deemed high-risk will be placed under close monitoring and subject to inspection, with violations handled strictly in accordance with the law.

In addition, tax authorities are required to intensify reviews of tax filings and payment obligations. Where discrepancies are detected, enterprises must be guided to make timely amendments, while inspections at taxpayers’ premises will be expanded.

A notable feature of the directive is the requirement to develop specialised inspection plans focusing on companies with long-term losses and thin margins. Provincial tax departments, along with the Large Enterprise Tax Department and the E-commerce Tax Department, will conduct inspections directly at company headquarters. In cases where on-site inspections are not feasible, appropriate supervisory measures will be applied to ensure effective oversight.

The implementation timeline is set from April to December 2026. Tax authorities must submit detailed inspection plans for each enterprise under their management in April, provide monthly progress updates, and complete a final report by December. The report will detail additional tax collections, penalties imposed, and common violations identified during the process.

The appended list of 302 enterprises reflects a broad cross-section of Vietnam’s economy, spanning retail, steel, food and beverage, agriculture, manufacturing, and technology.

In retail and food services, companies such as Lotteria Vietnam Co., Ltd. and KFC Vietnam Joint Venture Co., Ltd. are included. The steel sector features Pomina Flat Steel JSC and Formosa Ha Tinh Steel Corporation, alongside other manufacturers.

In technology and telecommunications, VNPT Technology Corporation and VNPT E-Payment JSC are among those identified.

The list includes a wide range of domestic and foreign-invested manufacturers such as TOTO Vietnam Co., Ltd., Schaeffler Vietnam Co., Ltd., and Sanhua Vietnam Co., Ltd., alongside enterprises operating in logistics, real estate, energy, retail, and import-export.

The inclusion of large corporations across multiple sectors highlights a shift towards more risk-based tax management, with authorities focusing on enterprises whose financial performance may not align with their scale of operations. Particularly notable is the presence of firms in sectors typically associated with stronger profitability, suggesting that cost structures and internal arrangements may be delivering a significant blow to margins.

At the same time, differences in the composition of the list indicate varying compliance profiles and financial reporting practices across industries.

VIR