Regulations on transferring lawful profit of foreign investors abroad

by QuynhHuong

When investing in Vietnam, the issue of transferring investment profits is an issue that foreign investors often give a great concern on. Although it is not an unfamiliar issue; yet this problem still requires strict control. Therefore, in this article, LSX will give you information about the regulations on transferring lawful profit of foreign investors abroad.

  • Circular 186/2010/TT-BTC

What is lawful profits to transfer aboard?

Accordingly, profits transferred by foreign investors from Vietnam to abroad under the guidance in Circular 186/2010/TT-BTC are profits legally divided or obtained from direct investment activities in Vietnam; according to the Law on Investment, after fulfilling financial obligations to the State of Vietnam.

Type of lawful profits to transferred abroad

Hence Article 2, Circular 186/2010/TT-BTC, the following profits are legally transferable:

  • Profits remit abroad in cash in accordance with the law on foreign exchange management
  • Profits remit abroad in kind and converted into in-kind values ​​according to the provisions of the law on import and export of goods and relevant laws.

Time to transfer lawful profits abroad

Thus the regulation, foreign investors may transfer their lawful profits at 02 specific times as follow:

Transfer profits abroad every year

Basically, foreign investors can annually transfer the profits distributed or earned from direct investment activities in Vietnam abroad at the end of the fiscal year; after the enterprises in which the foreign investors participate have fulfilled their obligations.

Specifically, the enterprise must fulfill its financial obligations to the State of Vietnam in accordance with the law, submit audited financial statements, tax finalization declarations; along with the financial year corporate income tax finalization declaration to the direct tax administration agency.

Transfer the profits abroad at the end of direct investment activities in Vietnam

Foreign investors can remit profits abroad at the end of their direct investment activities in Vietnam; after the enterprise in which the foreign investor participates in investment has fulfilled its financial obligations to the Vietnamese State.

Moreover, the enterprise also needs to submit the audited financial statements, corporate income tax finalization declarations to the tax administration agency directly and fulfill all obligations as prescribed by the Law on Tax Administration.

Notice of profit transfer abroad

Nonetheless, foreign investors besides authorizes the enterprise in which the foreign investor participates; can directly make a notice of the remittance of profits abroad according to the form promulgated together with the Circular 186/2010/TT-BTC.

Then, they shall send it to the tax authority directly managing the enterprise; in which the foreign investor invests, at least 07 working days before transferring profits abroad.

Thank you for paying attention. In case you have any questions, please contact Lawyer X for quick and best legal services: 0833102102.

Who are foreign investors?

Foreign investor means an individual with foreign nationality or an organization established under foreign law that conducts business investment activities in Vietnam.

How will the profit transfer?

Foreign investors must transfer overseas through direct investment capital account

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