A Member of Song Da Corporation Fined and Tax Delinquencies Collected

Song Da Urban Development and Investment Joint Stock Company (Song Da Urban Development, SDU on HNX) has just released an announcement regarding their receipt of Decision No. 25293/QD-CCTKV01-TTKT1-XPVPHC from the Area I Tax Authority, imposing administrative sanctions for tax-related violations.

The company has been found guilty of several infractions, including claiming value-added tax (VAT) deductions on purchases corresponding to invoices from units that were notified as inactive at their registered business addresses, and misdeclaring the timing of taxable revenue and output VAT.

Additionally, the company expensed invoices from inactive units for corporate income tax (CIT) calculations, misdeclared the 1% provisional CIT payment during tax finalization, under-declared revenue and deductible expenses for CIT (as recorded in their accounting books), expensed board member fees for non-executive directors, and declared financial expenses exceeding the 30% limit for entities with related-party transactions.

As a consequence, Song Da Urban Development was fined nearly VND 1.4 billion for misdeclaration resulting in increased payable taxes, and VND 120 million for issuing invoices with incorrect timing.

The company is also required to remedy the situation by paying over VND 2.6 billion in outstanding VAT, more than VND 4.2 billion in CIT from real estate business activities, and nearly VND 226.8 million in CIT from other business activities.

They must also pay overdue tax fines totaling over VND 2 billion for CIT and more than VND 1.5 billion for VAT. These overdue tax amounts are calculated up to March 15, 2025, and SDU is responsible for calculating and paying any additional overdue tax amounts from this date until the full payment of overdue taxes to the state budget.

In total, the company is required to pay over VND 12 billion in tax arrears, fines, and overdue tax amounts to the state budget.

Song Da Urban Development and Investment Joint Stock Company was established in 2007 and is a subsidiary of Song Da Corporation – Joint Stock Company (SJG on UPCoM).

According to their website, Song Da Urban Development is the investor of several projects, including the Song Da – Ha Dong Mixed-use Building Project, the Song Da Urban Area High-rise Complex Project at 143 Tran Phu, Ha Dong, the Song Da – CNT Plaza High-rise Complex Project in Ho Chi Minh City, and the Xi Mang – Song Da Mixed-use Housing Project, among others.

In terms of business performance, the company’s consolidated financial statements for the first quarter of 2025 showed a slight improvement, with a reported revenue of over VND 12.1 billion, an 11% increase compared to the same period last year. After deducting various taxes and fees, their net profit was nearly VND 268.3 million, a decrease of 21.7%.

As of March 31, 2025, the company’s total assets decreased slightly by VND 1.5 billion from the beginning of the year to VND 1,186.9 billion. Inventory accounted for 45.3% of total assets, amounting to over VND 538 billion, while short-term receivables made up 36.2% of total assets, totaling more than VND 429.6 billion.

On the liabilities side, total liabilities stood at nearly VND 832.8 billion, a minor decrease of VND 1.8 billion from the beginning of the year. Borrowings and finance leases accounted for 29.5% of total liabilities, amounting to nearly VND 245.6 billion, while advances from customers made up 33.1% of total liabilities, totaling approximately VND 275.6 billion.