NDN Fined VND 424 Million by Da Nang Tax Department Over 2024-2025 Violations

Overview

CTCP Đầu tư Phát triển Nhà Đà Nẵng (HNX: NDN) disclosed on 22 September that it received an administrative penalty decision from the Da Nang Tax Department covering three tax and invoice violations across the 2024 and 2025 tax periods. The total fine and back-tax obligation exceeds VND 424 million, a modest sum relative to the company’s scale but a compliance item investors should note alongside its upcoming cash dividend.

Key Facts

• Total fines and back taxes: more than VND 424 million, per the company’s 22 September disclosure.
• The Da Nang Tax Department issued the decision on 19 September.
• Fines alone total more than VND 92 million: VND 6.5 million for incorrect 2024 corporate income tax (CIT) filing, more than VND 63 million for understated 2025 CIT, and VND 22.5 million for issuing invoices at the wrong time.
• Back tax payable: more than VND 316.2 million in understated 2025 CIT, plus more than VND 16.4 million in late-payment interest calculated to 20 September 2026.
• Invoice violations covered 24 invoices: 12 in 2024 and 12 in 2025, none of which delayed the company’s tax obligations.
• The decision takes effect within 10 days of receipt by the company.
• Separately, NDN set a 7% cash dividend (VND 700 per share) for 2025, with an ex-dividend date of 29 September and payment on 20 October; with 71.7 million shares outstanding, the payout is estimated at more than VND 50 billion.

What Happened

According to the company’s unusual-information disclosure, CTCP Đầu tư Phát triển Nhà Đà Nẵng received the penalty decision from the Da Nang Tax Department on 19 September and published it on 22 September. The tax authority identified three administrative violations. For the 2024 tax period, the company filed incorrectly but the error did not result in a shortfall of CIT payable on production and business activities. For 2025, the incorrect filing did lead to underpaid CIT owed to the state budget.

The third violation concerned invoice timing: NDN issued 24 invoices at times that did not comply with regulations, split evenly between 2024 and 2025. The tax authority noted this did not cause any delay in the company’s tax obligations. Beyond the fines, NDN is required to pay the understated 2025 CIT of more than VND 316.2 million into the state budget, plus late-payment interest of more than VND 16.4 million through 20 September 2026. The decision is effective within 10 days of receipt.

Market Context

NDN trades on the HNX and closed at VND 8,200 on 28 September 2026. The penalty is immaterial in absolute terms for a real estate developer of NDN’s size, and the more relevant near-term catalyst is the 7% cash dividend, which puts the shares close to an ex-dividend date of 29 September. Vietnamese real estate equities have generally been sensitive to tax and land-compliance headlines, but a low-hundreds-of-millions dong administrative penalty is unlikely to move the ticker on its own.

Strategic Significance

The strategic read is about governance quality rather than financial impact. Two consecutive years of incorrect CIT filings and repeated invoice-timing errors point to internal accounting and tax-control weaknesses that investors in small-cap HNX real estate names should monitor. The company’s ability to fund a VND 50 billion-plus dividend while absorbing a VND 424 million tax settlement suggests no liquidity strain, but recurring compliance lapses can raise the risk of more intrusive audits or larger assessments in future periods.

What to Watch

• Confirmation that the fine and back taxes are paid within the 10-day effectiveness window.
• The 29 September ex-dividend date and the 20 October cash payment of VND 700 per share.
• Any additional tax or invoice findings from the Da Nang Tax Department for later periods.
• NDN’s next financial statements for disclosure of the penalty’s P&L impact and any remediation of tax controls.
• Further unusual-information filings on HNX regarding the case.