Thuduc House (TDH) Wins 5-Year Tax Battle, Enforcement Lifted

Overview

Thuduc House (TDH) has officially received notice from the Ho Chi Minh City Tax Department canceling three tax enforcement decisions that had crippled its operations since 2020. The legal victory, following a 5-year court battle, removes restrictions on invoices, customs procedures, and bank accounts, enabling the real estate firm to resume normal business activities.

Key Facts

• On April 21, 2025, TDH received Notice No. 9836/TB-TPHCM from the HCMC Tax Department implementing the appellate administrative judgment No. 332/2025/HC-PT issued by the High People’s Court in HCMC on September 23, 2025.
• Three enforcement decisions (Nos. 5438, 5439, and 66) issued in late 2020 and early 2021 have been canceled.
• All derivative measures including suspension of customs procedures, invoice usage, and bank account freezes have been lifted.
• Tax arrears notices from December 2020 to April 2025 related to late payment interest on a principal of over VND 365.54 billion have been removed.
• The original tax assessment totaled over VND 451 billion, including VND 365 billion in VAT refunds.
• In March 2021, TDH was forced to stop using 16,508 invoices, effectively freezing its real estate and trading operations.
• TDH recorded a record loss of VND 942 billion in 2021.

What Happened

Thuduc House (TDH) announced on April 21 that it had received a notice from the Ho Chi Minh City Tax Department implementing a final court ruling that cancels all tax enforcement measures imposed since 2020. The company had been embroiled in a legal dispute after the tax department issued decisions to recover VAT refunds and impose penalties totaling over VND 451 billion, leading to the suspension of invoice usage, customs clearance, and bank account access.

Throughout the legal process, TDH argued that it was a victim of fraud by external parties in an electronics component scam and that the harsh administrative tax measures were premature before the criminal case concluded. The company’s persistence paid off with the High People’s Court ruling in its favor, and the tax department has now formally implemented the judgment.

Market Context

TDH shares have seen strong gains in recent sessions following earlier reports of the legal victory, including limit-up moves. The stock trades on HOSE under the ticker TDH. The real estate sector has been under pressure from regulatory tightening and slow project approvals, but TDH’s specific overhang was its own tax dispute. The resolution removes a company-specific risk that had kept the stock in controlled trading status and eroded shareholder equity.

Strategic Significance

The lifting of tax enforcement allows TDH to resume normal business operations, including issuing invoices, conducting import-export transactions, and accessing bank accounts. This is critical for a real estate developer that relies on cash flow from project sales and trading activities. The company can now pursue project development and potentially recover from the severe operational paralysis that led to a record loss in 2021. Additionally, the legal victory strengthens TDH’s position in the ongoing criminal case related to the electronics component scam, where it claims victim status.

What to Watch

• TDH’s next quarterly financial report to assess operational recovery and cash flow generation.
• Any new project announcements or land acquisitions as the company resumes normal activities.
• Progress of the criminal case involving former executives and the electronics component scam.
• Potential reinstatement of TDH stock from controlled trading status on HOSE.
• Updates on the company’s ability to reclaim the VND 365 billion VAT refund that was originally disputed.