A Ho Chi Minh City court has officially dismissed a lawsuit filed by Coca-Cola, upholding the tax agency’s decision to impose over $33 million (over 821 billion VND) in back taxes and penalties.

According to the tax authority, the ruling affirms that Coca-Cola failed to fulfill its tax obligations in accordance with regulations, while repeatedly reporting losses over an extended period.

The original decision, issued by the General Department of Taxation (now the Department of Taxation), followed a comprehensive audit that reviewed Coca-Cola’s operations between 2007 and 2015. The investigation began in 2019 and lasted several years.

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Coca-Cola remains subject to over $33 million in back taxes. Photo: L.B

The audit determined that Coca-Cola had overstated its losses by more than 762 billion VND, or approximately $30.6 million. Authorities subsequently demanded more than 471 billion VND (about $18.9 million) in taxes owed, with fines and late payment fees bringing the total amount due to over 821.4 billion VND (more than $33 million).

Previously, the Ho Chi Minh City Department of Finance had confirmed that the investment license for Coca-Cola Beverages Vietnam Limited was set to expire on September 27, 2025. The 30-year project originally began on September 27, 1995.

In February 2025, Coca-Cola Vietnam submitted a formal declaration stating it would no longer pursue project goals after the license expired.

Under Article 48, Clause 1(c) of the 2020 Investment Law, investors are required to complete termination procedures when a project reaches the end of its licensed period. According to the 2020 Investment Law and Decree No. 102/2024/ND-CP, investors are granted up to 24 months to handle asset liquidation and land-related matters following project closure.

The Coca-Cola project in Ho Chi Minh City is located in Linh Xuan Ward and originally carried a total registered investment of more than $715 million (equivalent to 13 trillion VND based on the exchange rate at the time of certification).

In July 2025, Coca-Cola Vietnam inaugurated a new plant in the Phu An Thanh Industrial Park in Ben Luc District, Tay Ninh Province. The facility, covering 19 hectares, represents the largest of Coca-Cola’s three manufacturing sites in Vietnam and is capable of producing up to one billion liters of beverages per year.

Tran Chung