Annual profit transfer abroad

Profits transferred abroad annually are profits that foreign investors are entitled to share or receive in the fiscal year from direct investment activities based on audited financial statements and corporate income tax finalization declarations of enterprises in which foreign investors participate in investment, plus (+) other profits such as profits not yet transferred from previous years; minus (-) amounts that foreign investors have used or committed to use for reinvestment in Vietnam, profits that foreign investors have used to cover expenses of foreign investors for production and business activities or for personal needs of foreign investors in Vietnam.

Foreign investors are allowed to transfer profits annually when meeting the following conditions:

• Foreign investors are not allowed to transfer abroad profits distributed or earned from direct investment activities in Vietnam in the year in which the profit arises if the enterprise's financial statements of the year in which the profit arises still have accumulated losses after transferring losses in accordance with the provisions of the law on corporate income tax.
• Time of transfer: end of the fiscal year
• Audited financial statements and corporate income tax finalization declaration for the fiscal year have been submitted to the direct tax authority.
• Notified the direct tax authority about transferring profits abroad in accordance with regulations.
• Notified the direct tax authority about transferring profits abroad in accordance with regulations.

Forms of profit transfer from Vietnam to foreign countries:

Profits transferred from Vietnam to foreign countries can be in cash or in kind.

Profits transferred abroad in cash according to the provisions of the law on foreign exchange management are as follows:

• Foreign investors must transfer capital abroad through direct investment capital accounts.
• In case a foreign direct investment enterprise must close its direct investment capital account due to dissolution, bankruptcy, termination of the enterprise's existence or due to the transfer of an investment project that changes the initially registered legal entity of the foreign direct investment enterprise, the foreign investor may use the foreign currency current account, the Vietnamese Dong current account of that foreign investor opened at a licensed bank to conduct foreign currency purchase transactions, transfer direct investment capital and legal income abroad.

Profits transferred abroad in kind and converted in kind according to the provisions of the law on import and export of goods and relevant laws.

Procedures for transferring profits abroad:

Foreign investors directly or authorize the enterprise in which the foreign investor participates in the investment to notify the tax authority directly managing the enterprise of the transfer of profits abroad

Implementation period: at least 07 working days before transferring profits abroad.