A Chinese-invested company earning profits in Vietnam wants to repatriate them to its parent — what documents and procedures are required? The two core regulations are Circular 186/2010/TT-BTC (still in force) and Circular 38/2026/TT-NHNN (the new transfer channel). This guide covers everything.
1. Conditions for Profit Repatriation
- Repatriation is done annually after the fiscal year ends.
- Only after fulfilling all financial obligations to the Vietnamese State (taxes, fees, payables).
- The company has filed its audited financial statements and corporate income tax finalization (Article 4, Circular 186/2010).
2. Tax Notice: 07 Working Days
Before repatriating profits abroad, the organization must notify its directly managing tax authority at least 07 working days in advance (Article 5, Circular 186/2010). This step is mandatory.
3. Required Dossier
- Independently audited annual financial statements.
- Annual corporate income tax finalization return.
- Profit distribution decision of the owner / Members’ Council / General Meeting of Shareholders.
- Power of attorney (if the person acting is not the legal representative).
- Proof of fulfilled tax obligations.
4. Channel: Through the ICA Account
All profit repatriation transactions must go through the foreign investment capital account in Vietnam (ICA account) at a licensed bank (Circular 38/2026/TT-NHNN) — not through a regular payment account.
5. Tax on Repatriated Profits
A major advantage: Vietnam does not levy withholding tax on dividends/profits paid to foreign organizations. However, businesses should note tax obligations in China on such income under Chinese law.
6. Note on the New Tax Administration Law
From July 1, 2026, the Tax Administration Law 108/2025/QH15 replaced Law 38/2019. Tax declaration and finalization procedures related to profit repatriation should follow the new law.
Note: This article summarizes current regulations for reference. For specific cases, consult a tax professional.
Transparency: This article was researched and drafted by the AI Legal Council from original legal texts, through independent cross-checking. Content is for reference only and does not replace legal advice from a licensed lawyer.