Profit remittance abroad by foreign investors in Vietnam – Legal regulations & procedures (Latest update)

“Profit remittance abroad” is among the most important issues for foreign investors when investing in Vietnam. Failure to comply with applicable regulations may result in tax clawbacks, administrative sanctions, or the rejection of remittances by commercial banks.

When an investment project begins generating profits, foreign investors often ask:

When can profits be remitted abroad?
How is remittable profit determined under Vietnamese law?
What procedures and notifications to tax authorities are required?

This article by Vo & Associates provides a comprehensive, updated, and accurate overview based on the current laws of Vietnam.

I. Legal basis:
II. What Is “Profit Remitted Abroad”?
III. When Can Profits Be Remitted Abroad?
- 1. Annual profit remittance
- 2. Profit remittance upon termination of investment activities
IV. Cases Where Profit Remittance Abroad Is NOT Permitted:
V. Procedure for Notifying Profit Remittance Abroad:
VI. Important Notes for Foreign Investors:
VII. FAQ – Frequently Asked Questions:
VIII. Profit Remittance Advisory Services – Vo & Associates:

I. Legal basis:

Profit remittance abroad by foreign investors is governed by the following key legal instruments:

Circular No. 186/2010/TT-BTC, guiding the remittance of profits abroad (still in effect).
Law on Investment 2020.
Law on Corporate Income Tax 2025 (replacing the former CIT law system).
Law on Tax Administration 2019 and Decree No. 126/2020/NĐ-CP.
Foreign exchange regulations, including the Ordinance on Foreign Exchange, Decree No. 70/2014/NĐ-CP, and Circular No. 06/2019/TT-NHNN.

These are the mandatory legal foundations that foreign investors must comply with before remitting profits abroad.

II. What Is “Profit Remitted Abroad”?

Under Circular No. 186/2010/TT-BTC, “profit remitted abroad” refers to the lawful profit received by foreign investors from direct investment activities in Vietnam after fulfilling all financial obligations to the State. Profits may be remitted in the following forms:

Cash remittance: via the foreign direct investment (FDI) capital account in accordance with foreign exchange regulations.
Assets/other non-cash forms: if the investment generates assets and the remittance complies with export, valuation, and tax declaration requirements under Vietnamese law.

III. When Can Profits Be Remitted Abroad?

1. Annual profit remittance

Conditions:

Completion of the financial year.
Full settlement of tax obligations (no outstanding tax liabilities).
Availability of audited financial statements and the CIT finalization dossier.

Determination of remittable profit:

Annual remittable profit is based on the distributable profit in the audited financial statements and CIT finalization for that year, plus undistributed profit carried forward from previous years, minus any profit already reinvested or lawfully used for business expenses or personal needs in Vietnam

2. Profit remittance upon termination of investment activities

Applicable in cases of dissolution of the FDI enterprise, full capital transfer, or termination of the investment project.

Conditions:

All financial and tax obligations have been fully discharged.
Audited financial statements up to the termination date have been submitted.
Full compliance with obligations under the Law on Tax Administration.

Amount to be remitted:

The total accumulated profit during the investment period, minus the profit reinvested, profit previously remitted abroad, and profit used for business operations or personal expenses in Vietnam.

IV. Cases Where Profit Remittance Abroad Is NOT Permitted:

Foreign investors may NOT remit profits abroad in the following situations:

The enterprise still has accumulated losses or has not carried forward losses in accordance with the Law on Corporate Income Tax 2025.
Tax obligations have not been fully fulfilled: outstanding tax, penalties, or late payment interest (Articles 17 & 59, Law on Tax Administration 2019).
CIT finalization dossiers have not been submitted on time (Article 44, Law on Tax Administration 2019).
No audited financial statements are available to verify lawful profit.
Violations of foreign exchange regulations or insufficient supporting documents for remittance under Circular 06/2019/TT-NHNN.
The enterprise is subject to tax enforcement measures or disputes affecting the determination of tax obligations (Article 52, Law on Tax Administration 2019).

Failure to submit periodic investment activity reports as required under Article 72, Law on Investment 2020.

V. Procedure for Notifying Profit Remittance Abroad:

Under Article 5 of Circular No. 186/2010/TT-BTC:

Foreign investors must notify the tax authority at least 07 working days before the planned remittance.

Required dossier:

Written notification (using the prescribed form).
Documents evidencing the distributable profit.
Audited financial statements and CIT finalization dossiers.

For remittance of accumulated profits from multiple years, only one notification is required, accompanied by a detailed schedule.

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VI. Important Notes for Foreign Investors:

Profit must be remitted through the FDI capital account.
Tax and audit documentation must be fully prepared before any remittance.
The enterprise must not have accumulated losses.
Remitted amounts must match accounting records and tax declarations.
Investors should prepare: A profit breakdown by year; Tax payment receipts; Supporting explanations to avoid delays from banks.

VII. FAQ – Frequently Asked Questions:

Is profit remittance subject to additional tax? => No. CIT is paid prior to profit distribution.
Is there a limit on the amount of profit that can be remitted? =? No. Remittance is unlimited as long as the profit is lawful and properly documented.
Must audit be completed before remittance? => Yes. Audited financial statements are mandatory.
Are procedures different for individual foreign investors? => No. The same procedures apply under Circular 186/2010/TT-BTC.