Da Nang Pharmaceutical Company Fined Nearly VND 1 Billion in Tax Evasion Case

The Da Nang Tax Department has issued a decision to impose administrative penalties on Da Nang Pharmaceutical and Medical Equipment Joint Stock Company (Dapharco, stock code: DDN) for multiple tax declaration violations.

According to the findings, Dapharco incorrectly declared and underpaid value-added tax (VAT) for the tax periods of 2023 and 2024, and also misdeclared corporate income tax (CIT) for the years 2022-2024. The company also made errors in VAT declarations for several other periods, though these did not result in underpayment of taxes.

The tax authority has imposed administrative fines totaling over 161.6 million VND, including nearly 29 million VND for VAT violations, more than 113 million VND for CIT violations, and 19.5 million VND for other misdeclarations.

Additionally, Dapharco is required to pay over 710 million VND in back taxes and late payment fees, comprising 144.9 million VND in VAT, 565.8 million VND in CIT, and over 98 million VND in late fees. The company must also reduce its deductible VAT by more than 123 million VND.

In total, Dapharco is obligated to pay an additional 971 million VND.

Regarding business performance, in the first six months of 2025, Dapharco reported revenue of 502 billion VND, a decline of over 22% compared to the same period last year; net profit after tax reached only 1.3 billion VND, a decrease of nearly 3.6 times. The company attributed this primarily to increased investment costs for the NeoVita Vaccination and Medical Services Center in Ho Chi Minh City.