Thuduc House (TDH) Tax Enforcement Lifted After Final Court Ruling

Overview

Thuduc House (TDH) announced on April 21 that it has received a final appellate administrative court ruling, resulting in the Ho Chi Minh City tax authority lifting all enforcement measures and canceling a tax debt notice related to over VND 365 billion in late payments. This removes a major legal obstacle that had constrained the company’s operations for years.

Key Facts

• Thuduc House received a final appellate administrative court ruling from the High People’s Court in Ho Chi Minh City.
• The tax authority has terminated all administrative enforcement measures against the company.
• The tax debt notice related to late payments of over VND 365 billion has been canceled.
• The ruling lifts restrictions on asset transfers and mortgages owned by Thuduc House.
• In 2024, TDH reported revenue of VND 110 billion and after-tax profit of VND 108 billion, nearly double its profit target of VND 66 billion and the highest in six years.
• The 2024 profit turnaround was largely due to the reversal of over VND 91 billion in late-payment interest after the favorable court ruling.
• For 2025, TDH targets revenue of approximately VND 250 billion and after-tax profit of VND 38 billion.

What Happened

Thuduc House (Thuduc House) announced that it has received a notice from the Ho Chi Minh City Tax Department to execute a final appellate administrative court ruling issued by the High People’s Court in Ho Chi Minh City. According to the notice, the tax authority has ended all administrative enforcement measures against the company and canceled the tax debt notice related to late payments of over VND 365 billion.

The company stated that the execution of this ruling directly removes restrictions on the transfer and mortgage of assets owned by Thuduc House. Management described this as a legal milestone that resolves long-standing difficulties. The tax enforcement stemmed from alleged violations related to export activities during 2017-2019, which the company contested and won at the appellate court in September 2025.

Market Context

Thuduc House (TDH) is listed on the Ho Chi Minh Stock Exchange (HOSE) in the real estate sector. The stock has been under pressure due to the prolonged tax dispute, which hindered project development and asset transactions. The 2024 financial results showed a sharp turnaround from losses to profit, driven by the reversal of late-payment interest provisions. The removal of enforcement measures is expected to improve investor sentiment and facilitate the company’s operational recovery.

Strategic Significance

The final court ruling and lifting of tax enforcement remove a critical overhang that has constrained Thuduc House’s ability to develop projects and manage assets. With legal clarity restored, the company can now focus on restarting key real estate projects, expanding into distribution and food sectors, and pursuing its plan to develop small-scale commercial service land, industrial parks, and industrial clusters over the next five years. The resolution also strengthens the company’s financial position by eliminating the need for further provisions related to the disputed tax amount.

What to Watch

• Progress on restarting key real estate projects and any new project announcements.
• Q1 2025 earnings release to assess the impact of the legal resolution on financial performance.
• Updates on the company’s diversification into distribution and food sectors.
• Shareholder meeting materials for detailed plans on land fund development and capital allocation.
• Any further regulatory or legal challenges that may arise from the tax authority’s compliance with the court ruling.