Profit Repatriation from Vietnam for Foreign Investors

The procedure for foreign investors to transfer profits abroad is an issue that an FDI company in Vietnam needs to pay special attention to after generating profits in Vietnam. Investors are only allowed to transfer lawful profits abroad when they have met the conditions on tax, finance, and foreign exchange management. In particular, from August 18, 2026, the new regulations in Circular 38/2026/TT-NHNN have many points to update regarding the foreign direct investment account and foreign investment cash flows. In the article below on profit repatriation from Vietnam for foreign investors, Viet An Law Firm, with its experience in foreign investment consulting in Vietnam, will help clients understand this topic better.

Conditions for transferring investment profits abroad in Vietnam

To transfer profits abroad, investors must first fully perform their financial obligations in accordance with the law when carrying out business investment activities in the territory of Vietnam. In addition, it is necessary to meet the following conditions:

• Need to fulfill obligations requested by the tax authority when ending the investment project in Vietnam.
• Submit financial statements (Audited statements) and corporate income tax (CIT) finalization declarations for the financial year.
• In the financial statements, account 4211 (undistributed after-tax profits of the previous year) and account 4212 (undistributed after-tax profits of this year) do not have accumulated losses carried forward to the following year.
• Submit a notification dossier to the managing tax authority regarding the remittance of profits abroad.

What profits can be transferred abroad in Vietnam?

According to Circular 186/2010/TT-BTC, profits transferred from Vietnam abroad are lawful profits distributed or obtained from direct investment activities in Vietnam after having fully performed financial obligations to the State of Vietnam. Profits can be transferred in cash or in kind.

Simply understood:

Profits to be transferred = lawful profits belonging to investors – used/reinvested amounts or amounts to be excluded according to regulations.

For annual profit transfers, the amount of profit is determined on the basis of audited financial statements, CIT finalization, and untransferred profits from previous years; concurrently, it is required to exclude the amounts that investors have used or committed to use for reinvestment or expenditure in Vietnam according to regulations.

Example

An FDI company in Vietnam has:

• Profit after tax in 2026: 10 billion VND;
• Accumulated loss after loss carrying forward: 0 VND;
• The foreign investor is distributed 80% of the profit;
• The investor does not use this profit for reinvestment or expenditure in Vietnam.

When fully meeting legal conditions, the profit portion distributed to the investor can undergo the procedure for transfer abroad.

Dossier for remittance of profits abroad in Vietnam

Notification dossier to the tax authority

Usually includes:

• Notification of transferring profits abroad according to the form;
• Power of attorney from the foreign investor to the enterprise if the enterprise performs it on their behalf;
• Documents proving the amount of profit to be transferred;
• Audited financial statements;
• CIT finalization dossier;
• Documents proving the enterprise has completed financial obligations;
• Decision/documents on profit distribution according to the enterprise’s regulations;
• Other documents according to the actual requirements of the tax authority.

Working dossier with the bank

The permitted bank may request dossiers and documents to verify the purpose and legality of the transaction.

According to Circular 38/2026/TT-NHNN, permitted banks are responsible for guiding clients, checking, and keeping documents appropriate to the transaction; at the same time, investors/enterprises must provide related documents and vouchers at the bank’s request.

Therefore, besides the notification dossier to the tax authority, enterprises should proactively prepare:

• Notification of profit transfer sent to the tax authority;
• Financial statements;
• Tax finalization;
• Tax payment receipts;
• Decision on profit distribution;
• Documents identifying the investor’s right to receive profits;
• Legal dossier of the investor;
• Information on the foreign direct investment account;
• Other documents as requested by the bank.

Procedure for transferring investment profits abroad in Vietnam

Step 1: Determine the allowable profit to be transferred

Enterprises check:

• Profit after tax;
• Accumulated losses;
• Profit portion belonging to foreign investors;
• Used/reinvested amounts;
• Tax obligations and financial obligations.

Step 2: Complete tax obligations and reports

Enterprises complete relevant tax obligations and prepare/submit financial statements and tax finalization as prescribed.

Step 3: Perform profit distribution

Enterprises carry out internal procedures for profit distribution to investors according to the type of enterprise and the enterprise’s charter.

Step 4: Notify the tax authority

The investor or the authorized enterprise sends the profit transfer notification to the direct managing tax authority.

The sending time must be at least 07 working days before the expected date of transferring profits.

Step 5: Prepare the bank dossier

The enterprise works with the bank where the investment capital account is opened to check the dossier and conditions for conducting the transaction.

Step 6: Transfer profits abroad

From August 18, 2026, when foreign investors transfer profits and lawful revenues abroad, they must comply with the account mechanism according to Circular 38/2026/TT-NHNN. Transferring profits abroad, in principle, is carried out through the investment capital account at a permitted bank.

Important new points on capital accounts from August 18, 2026

• Previously, Circular 06/2019/TT-NHNN regulated direct investment capital accounts. From August 18, 2026, Circular 38/2026/TT-NHNN replaced it and used the concept of foreign investment capital accounts in Vietnam.
• According to the new regulations, profits and lawful revenues from foreign investment activities in Vietnam, when transferred abroad, must be implemented through the investment capital account, except for specified exceptions.
• Concurrently, Circular 38/2026/TT-NHNN stipulates that permitted banks must issue internal regulations on dossiers, orders, and procedures for opening and using investment capital accounts and require cash flow transparency, which must clearly state the amount and purpose of the money transfer in each transfer order.

Foreign ownership threshold to note

• A notable point in the new regulatory system is the criteria for identifying economic organizations subject to using investment capital accounts, which has been adjusted to foreign investors owning over 50% of charter capital, instead of the previous expression “from 51%”. Circular 38/2026/TT-NHNN continues to agree with this approach.
• Therefore, enterprises with a foreign ownership ratio of over 50% but under 51% also need to strictly check their obligations regarding the investment capital account.

Does profit repatriation from Vietnam for foreign investors require tax payment?

Transferring profits abroad is not a separate tax levied on the act of transferring money. However, before transferring, enterprises must fully handle tax obligations arising from the activities that generate the profit.

Therefore, one should not mechanically apply the principle “transferring profits abroad does not require additional tax payment”. It is necessary to determine whether the investor is an individual or an organization, the nature of the amount, and the incurred tax obligations.

Cases where it is not allowed for foreign investors to transfer profits in Vietnam

Investors need to be cautious in these cases:

• The enterprise still has accumulated losses after carrying forward losses as prescribed;
• Tax obligations and financial obligations are not completed;
• Has not completed financial statements or tax finalization according to the cases required to perform;
• The amount has not been determined as lawful profits belonging to the investor’s receiving rights;
• The profit distribution dossier is inappropriate;
• Failure to submit the profit transfer notification as prescribed;
• Failure to meet requirements for accounts and foreign exchange documents;
• Transferring money for the wrong purpose or being unable to prove the source of money;
• The dossier provided to the bank is incomplete or inconsistent.

In particular, enterprises should not solely rely on the cash balance in the bank account to conclude that they can transfer that amount to their home country. An important condition is to prove the legal source of the money and the actual amount of profit allowed to be distributed.

Some notes when transferring profits abroad in Vietnam

First, distinguish “profits” from “lawful revenues”

Circular 38/2026/TT-NHNN regulates both the transfer of profits and the transfer of lawful revenue abroad. Therefore, not every amount investors receive from Vietnam is called profit.

Second, need to update bank regulations after August 18, 2026

This is an important new point. Circular 38/2026/TT-NHNN replaced Circular 06/2019/TT-NHNN.

Therefore, the actual dossier needs to be checked according to the requirements of the bank where the enterprise opens the investment capital account.

Third, tax notification and bank dossiers are two different issues

Having sent the notification to the tax authority does not mean the bank must automatically execute the transaction. The bank still has the responsibility to check documents, purposes, and the suitability of the transaction according to foreign exchange management regulations.

Fourth, need to check the tax obligations of individual investors

If the investor is a foreign individual, the enterprise needs to review PIT obligations before paying profits.

Fifth, prepare the dossier before the expected date of money transfer.

Enterprises should determine in advance:

Date of completing finalization → date of tax notification → 07 working days time limit → expected money transfer date → bank dossier.

Preparing in advance helps limit situations where profits are distributed, but money cannot be transferred due to missing documents.

Frequently Asked Questions

Are foreign investors required to transfer profits abroad annually?

It is not mandatory to immediately transfer out whenever there is profit. Investors can choose to use profits according to legal regulations. However, if carrying out profit repatriation from Vietnam for foreign investors, they must meet the corresponding conditions and procedures.

Can profits of multiple years be combined for a single transfer?

This needs to be considered on the basis of untransferred profits of previous years, the status of accumulated losses, financial and tax dossiers, and regulations on profit distribution. One should not automatically assume that profits of multiple years can be accumulated and transferred without reviewing the dossier of each year.

Is it necessary to apply for permission from the tax authority before transferring profits?

Normally, investors submit a notification to the direct managing tax authority at least 07 working days before transferring profits according to Circular 186/2010/TT-BTC; this is not a procedure to apply for a profit transfer license.

Is transferring profits abroad strictly required to be through an investment capital account?

Yes, in principle, transferring profits and transferring lawful revenue abroad by foreign investors must be carried out through an investment capital account according to Circular 38/2026/TT-NHNN, except for specified exceptions.

Can profits be transferred in kind?

Yes. Circular 186/2010/TT-BTC allows profits transferred from Vietnam abroad to be in cash or in kind. In the case of transfer in kind, it must comply with legal provisions on import and export and other relevant legal provisions.

Clients wishing to get detailed advice on the profit transfer procedures and foreign investment consulting in Vietnam, please contact Viet An Law Firm for the best support!