On 8/10, the Da Nang City Tax Department announced an administrative penalty against Da Nang Pharmaceutical and Medical Equipment Joint Stock Company (Dapharco), located at 2 Phan Dinh Phung Street, Hai Chau Ward. The department found the company had several violations in its tax declarations.

The inspection concluded that Dapharco's incorrect declarations resulted in underpaid value added tax (VAT) for six tax periods in 2023 (1, 2, 4, 6, 7, 9) and two periods last year (1, 9). Additionally, the company misdeclared corporate income tax for three years (2022-2024), reducing its payable amount.

The company also made other errors in VAT declarations across multiple periods, but these did not incur additional tax liabilities.

Dapharco faces a total penalty, back taxes, and late payment fees of approximately 971 million dong. This includes an administrative fine of 161,6 million dong, back taxes of nearly 145 million dong for VAT, and approximately 566 million dong for corporate income tax.

Due to late payments, Dapharco incurred an additional 98 million dong in interest as of 29/9. The tax authority also mandated the company reduce its deductible VAT from prior periods by over 123 million dong.

Dapharco's headquarters stands at the intersection of Phan Dinh Phung and Tran Phu streets in Hai Chau Ward, Da Nang City. *Photo: Nguyen Dong*.

Dapharco is a leading pharmaceutical and medical equipment company in the Central Highlands region. Its comprehensive healthcare ecosystem includes the distribution and supply of pharmaceuticals, medical equipment, and pharmaceutical logistics. The company also manufactures medical supplies and cosmetics. In 2022, Dapharco expanded into retail and preventive healthcare services, establishing pharmacies and vaccination centers in Da Nang and Ho Chi Minh City (TP HCM).

For the first half of this year, Dapharco reported revenue of 502 billion dong, a more than 22% decrease year-on-year. After-tax profit stood at 1,3 billion dong, nearly 3,6 times lower than the same period. The company attributed this profit decline primarily to significantly increased investment costs for its NeoVita Vaccination Center and medical services system in TP HCM.

Nguyen Dong