In the context of deepening global economic integration, remitting profits from Vietnam abroad by foreign investors has become increasingly important. Vietnam has established a legal framework to facilitate investors while ensuring transparency and compliance with financial regulations. These provisions not only reflect Vietnam’s open-door policy toward foreign investment but also demonstrate its commitment to protecting the legitimate rights of investors. In this article, we will examine in detail the regulations on profit remittance, as well as the necessary conditions to carry out this process efficiently.

There are two timing options for remitting profits from Vietnam abroad:
Pursuant to Circular No. 186/2010/TT-BTC, the amount of remittable profits is determined as follows:
– **Annual remittable profits** are profits distributed to or earned by the foreign investor in the fiscal year from direct investment activities, based on audited financial statements and corporate income tax finalization declarations of the enterprise in which the foreign investor participates, plus (+) any other profits such as unremitted profits carried forward from previous years; minus (−) amounts the foreign investor has used or committed to use for reinvestment in Vietnam, or amounts used to cover expenses of the foreign investor for production and business activities or personal needs in Vietnam.
– **Profits remittable upon termination of direct investment activities in Vietnam** are the total profits earned by the foreign investor during the investment period in Vietnam, minus (−) amounts already used for reinvestment, amounts already remitted abroad during the investment period, and amounts used for other expenses of the foreign investor in Vietnam.
Profits remitted from Vietnam abroad may be in cash or in kind.
Pursuant to foreign exchange management regulations, cash profit remittance is carried out as follows:
Remittance of profits in kind shall be carried out and valued in accordance with regulations on import and export of goods and other relevant laws.
**General Conditions**
The enterprise may decide the amount of profits to be remitted abroad, provided that after offsetting losses from previous years, the audited financial statements show no accumulated losses (or as confirmed by the tax authority upon inspection), and all financial obligations to the State have been fulfilled.
**Conditions for Annual Profit Remittance**
Foreign investors are permitted to remit profits abroad annually when the following conditions are met:
**Conditions for Profit Remittance Upon Termination of Direct Investment Activities**
Pursuant to Articles 2 and 3 of Circular 186/2010/TT-BTC, foreign investors are permitted to remit lawful profits abroad when the following conditions are satisfied:
**Cases Where Profit Remittance Abroad Is Not Permitted**
Foreign investors are not permitted to remit profits abroad when profits earned from investment activities result in the enterprise’s financial statements still showing accumulated losses in accordance with corporate income tax regulations. In such cases, the enterprise must first settle all tax debts before the foreign investor’s profits may be remitted abroad.
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After fully satisfying the conditions for profit remittance abroad, the investor must provide documents proving the amount of remittable profits, including:
– Documents proving lawful source of funds: Minutes of the Board of Directors or Members’ Council approving profit distribution, or capital transfer contracts.
– Documents proving fulfillment of financial obligations to the Vietnamese State: Audited financial statements, corporate income tax finalization declarations, personal income tax finalization, etc.
Prior to remitting profits abroad, the investor must send written notice of the profit remittance to the direct tax management authority at least 7 working days in advance.
Pursuant to Article 5 of Circular No. 186/2010/TT-BTC, the procedure for notifying profit remittance abroad includes the following steps:
In addition to fulfilling general business compliance obligations and corporate income tax obligations, individual investors are subject to a 5% personal income tax on income from capital investment before remitting profits abroad.
Income from capital investment includes income received by individuals in the following forms:

Pursuant to Circular No. 186/2010/TT-BTC, at least 7 working days before remitting profits abroad, the foreign investor directly or through authorization to the enterprise in which the foreign investor participates shall notify the profit remittance using the prescribed form and submit it to the direct tax management authority of the enterprise in which the foreign investor participates.
The profit remittance notification form must fully, accurately, and clearly provide the following information:
• Foreign investor (name, nationality)
• Enterprise in which the foreign investor participates
• Registered profit remittance amount
• Amount of profits proposed to be remitted abroad
• Commitment by the investor that all information in the notification is completely true. The investor shall bear full responsibility for any inaccuracies in accordance with the law.
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The comprehensive investment law consultation service at BKC Law provides an all-in-one solution for investors, including advice on legal regulations, support for enterprise establishment, optimal investment structuring, and contract drafting. We also assist in completing necessary legal procedures, resolving disputes if they arise, and ensuring compliance with legal regulations throughout the investment process, helping investors save time and effort in managing and developing investment projects.
With a team of senior lawyers with many years of experience, solid legal knowledge, and strong bilingual consultation capabilities, BKC LAW is confident in being one of the best legal partners on the market to support foreign investors in carrying out investment activities in Vietnam.
To receive free legal consultation at BKC Law, please contact our lawyers using the following information:
Telephone: 0967 333 246
Email: info@bkclaw.vn
Branch in District 1: 9th Floor, Diamond Plaza Building, 34 Le Duan Street, District 1, Ho Chi Minh City
Branch in Binh Tan: 41 Ten Lua Street, Binh Tan District, Ho Chi Minh City
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