Tax penalties and back taxes assessed on Tibaco, a subsidiary of Duc Giang Chemicals Group

On March 30, Hai Phong City Tax Department issued penalties and back taxes against Tibaco, a subsidiary of Duc Giang Chemicals Group (DGC), totaling more than 1 billion dong. Accordingly, Tibaco was fined nearly 122 million dong by Hai Phong Tax Department for misstatements leading to underpayment of corporate income tax and an increase in refundable value-added tax. The company was also required to implement remedial measures related to these issues, including back taxes of nearly 451 million dong for corporate income tax, back taxes of over 145 million dong for value-added tax, and late payment penalties of nearly 328 million dong. The tax department notes that the late payment amounts above were calculated up to March 30; the company is responsible for calculating and paying amounts arising after that date. On the same day, Hai Phong Tax Department also issued a decision to reclaim nearly 112 million dong in VAT refunds, due to a reduction in deductible input VAT from Tibaco’s misstatements. The tax authority also indicated that Tibaco’s late payment as of March 30 is more than 41 million dong, and urged the company to calculate and pay any late payments after that date. In another development, Tibaco recently announced the extension of its 2026 annual general meeting to no later than June 30, due to the election of additional members to the Board of Directors and the Supervisory Board. Previously, Tibaco planned to hold an extraordinary general meeting in May to elect those positions, after a series of executives were prosecuted for violations of accounting rules causing serious consequences, resource exploitation and environmental pollution at Duc Giang Chemicals. As of December 31, 2025, Tibaco’s leadership list included Chairman of the Board Dao Huu Huyen, Board Member Dao Huu Duy Anh (son of Mr. Dao Huu Huyen) and Head of the Supervisory Board Hoang Thuy Ha, all identified as related to the case. Tibaco’s predecessor is the Tam Bac Battery Plant established in 1960. Its main business is the production of lead-acid batteries, dry-charge batteries, and supply materials for battery production. Currently, the company manufactures nearly 100 types of lead-acid batteries. The domestic market remains the company’s primary market. On the stock exchange, Tibaco’s TSB shares have fallen sharply after news of the leadership prosecutions and are trading around a three-year low. Market capitalization stands at around 130 billion dong.