One of the core rights of foreign investors in Vietnam is the right to repatriate profits abroad after fulfilling financial obligations. The procedure, however, has strict requirements on bank documentation and tax authority notification — a misstep at any stage can freeze the cash flow. This guide explains the current rules in detail.
1. Legal basis
- Law on Investment 2025 (143/2025/QH15, effective 1 March 2026): Article 11 — “Guarantee of investors’ right to transfer assets abroad”: after fully fulfilling financial obligations to the State of Vietnam, foreign investors may transfer abroad: (1) investment capital and investment liquidation proceeds; (2) income from business investment activities; (3) other lawfully owned money and assets.
- Circular 186/2010/TT-BTC (effective 2 January 2011, still in force): guidance on overseas profit transfers by foreign organizations/individuals with direct investment in Vietnam. Article 5: notify the tax authority at least 7 working days in advance.
- Circular 06/2019/TT-NHNN (Article 5): the direct investment capital account — the mandatory channel for transferring profits abroad.
2. Two permitted timings
- Annual transfer: at the end of the fiscal year, after the enterprise has fulfilled its financial obligations to the State and filed audited financial statements and the annual CIT finalization return with its directly managing tax authority;
- Transfer upon termination of investment: when ending direct investment activities in Vietnam, after fulfilling financial obligations and all duties under tax administration law.
Both require no remaining accumulated losses after loss carry-forward (applied in practice).
3. Determining the transferable profit amount
Transferable profit = profits earned in fiscal years up to the transfer date − amounts reinvested, already transferred abroad, or otherwise spent in Vietnam
Figures are based on audited financial statements and the CIT finalization returns of the foreign-invested enterprise.
4. Bank dossier
- A direct investment capital account in foreign currency at one licensed bank (per Circular 06/2019/TT-NHNN) — all profit transfers abroad must go through this account;
- Profit distribution decision: LLC → company decision; joint-stock company → General Meeting of Shareholders resolution on dividend payment;
- Profit transfer notification using the form issued with Circular 186/2010/TT-BTC;
- Power of attorney from the foreign investor to the invested enterprise (if the enterprise files on the investor’s behalf);
- Supporting documents: audited financial statements, CIT finalization returns, meeting minutes/profit distribution decisions.
Practical note: for accumulated profits over multiple years, file one consolidated notification for the whole period, itemizing the amount per year.
5. Tax notification: at least 7 working days in advance
Under Article 5 of Circular 186/2010/TT-BTC, the foreign investor — directly or by authorizing the invested enterprise — must notify the profit transfer (using the Circular’s form) to the tax authority directly managing the enterprise, at least 7 working days before the transfer. If authorized, the investor need not sign the notification form.
The enterprise receiving the foreign investment is responsible for fully performing financial obligations to the State in connection with the income forming the transferred profit.
6. Transfer forms
- In cash (VND or foreign currency): comply with foreign exchange regulations, via the direct investment capital account;
- In kind: valued under goods import/export law and relevant regulations.
7. Common pitfalls
- Forgetting the 7-working-day tax notification → the bank rejects the transfer order;
- Requesting the transfer before filing audited financial statements / the CIT finalization return;
- Unresolved accumulated losses;
- Transferring via an ordinary payment account instead of the direct investment capital account;
- Confusing profit repatriation (this procedure) with capital repatriation upon exit (a different forex procedure).
Content drafted by the FLAW AI Legal Council, pending QA Council review before approval. This article is for general information only and does not replace legal advice for any specific case.
