Cholimex Food (CMF) fined, back taxes total VND 3.6 billion

Overview

Cholimex Food (CMF), a Vietnamese producer of chili sauce and condiments, has been fined and ordered to pay back taxes totaling nearly VND 3.6 billion for tax declaration errors in the 2024-2025 fiscal period. The decision by the Hồ Chí Minh City tax authority follows a previous settlement of over VND 7.4 billion for the 2021-2023 period, highlighting recurring compliance issues at the company.

Key Facts

• The Hồ Chí Minh City tax authority issued a decision on administrative tax violations against Cholimex Food for the 2024-2025 fiscal year.
• The company was fined VND 543.1 million for under-declaring value-added tax, corporate income tax, and personal income tax.
• Back taxes totaled over VND 2.71 billion, including VND 1.41 billion in VAT, VND 912 million in CIT, and VND 388 million in PIT.
• Late payment interest of VND 320.98 million was assessed, calculated through August 7, 2026, with further interest accruing until full payment.
• The total amount under the decision is over VND 3.57 billion.
• In late 2024, the General Department of Taxation (now the Tax Department) ordered Cholimex Food to pay over VND 7.4 billion for tax errors in 2021-2023.
• In Q2 2026, Cholimex Food reported net revenue of over VND 1,129 billion (+15.8% YoY) and after-tax profit of over VND 87.1 billion (+20.7% YoY).

What Happened

The Hồ Chí Minh City tax authority has issued a decision to penalize Cholimex Food for administrative tax violations following a tax inspection for the 2024-2025 fiscal year. According to the decision, the company under-declared value-added tax, corporate income tax, and personal income tax, resulting in a shortfall in taxes payable. The company was fined VND 543.1 million, with no aggravating or mitigating circumstances identified.

In addition to the fine, Cholimex Food is required to pay over VND 2.71 billion in back taxes, comprising more than VND 1.41 billion in VAT, over VND 912 million in CIT, and over VND 388 million in PIT. The company also must pay VND 320.98 million in late payment interest, calculated through August 7, 2026, with further interest accruing until the amount is fully settled. The total amount under the decision exceeds VND 3.57 billion.

This is not the first time Cholimex Food has faced tax penalties. In late 2024, the General Department of Taxation (now the Tax Department) determined that the company had under-declared taxes for the 2021-2023 period, requiring payment of over VND 5.3 billion in back taxes and over VND 1 billion in late payment interest, totaling over VND 7.4 billion.

Market Context

CMF trades on the UPCOM exchange. The stock closed at VND 344,900 on August 18, 2026, down 6.19% year-to-date. Over the past month, CMF has declined 9.24%, and over three months it is down 13.56%, though it remains up 8.34% over the past year. Trading liquidity is extremely thin, with an average daily volume of just 119 shares per session from the start of the year to August 20. The stock reached a high of VND 444,743 on February 25 and a low of VND 331,100 on August 11. The tax penalty adds to negative sentiment, though the company’s fundamental performance remains solid.

Strategic Significance

The repeated tax violations raise governance and compliance concerns for Cholimex Food, which could affect investor confidence and potentially lead to more stringent regulatory oversight. While the financial impact of the latest penalty is modest relative to the company’s profitability—Q2 2026 after-tax profit was over VND 87 billion—the pattern of under-declaration suggests systemic issues in tax management. For long-term investors, this underscores the importance of monitoring the company’s internal controls and regulatory compliance, especially as it continues to expand its product portfolio in the condiments sector.

What to Watch

• Payment of the VND 3.57 billion fine and back taxes, and any subsequent tax inspections for future periods.
• Q3 2026 earnings results to assess whether the tax penalties impact profitability or cash flow.
• Any management commentary or remediation plans regarding tax compliance and internal controls.
• Trading activity in CMF shares, particularly any changes in liquidity or foreign ownership.
• Further regulatory actions or penalties from tax authorities that could signal deeper compliance issues.