Profit Repatriation Vietnam: A 2026 Guide
Foreign investors can transfer lawful profits from Vietnam to an overseas bank account. However, the company must meet several tax, accounting and banking rules before it sends the money.
For profit repatriation Vietnam, the company must complete its annual accounts, pay its taxes and check its past losses. It must also approve the payment and notify the tax authority.
Circular No. 38/2026/TT-NHNN took effect on August 18, 2026. It requires foreign investors to use the correct investment capital account for profit transfers.
This guide explains how to remit dividend and profit payments from Vietnam in 2026.
What Is Profit Repatriation?
Profit repatriation means transferring investment profits from Vietnam to a foreign investor.
A joint-stock company pays dividen
ds to its shareholders. A limited liability company distributes profits to its owner or members. The company must make the payment from lawful after-tax profit.
Profit repatriation is different from:
Service fees;
Management fees;
Royalties;
Loan interest;
Capital transfer proceeds; and
Return of investment capital.
These payments have different tax and banking rules. Companies should record each payment under its correct purpose.
When Can Foreign Investors Transfer Profits?
Circular No. 186/2010/TT-BTC allows foreign investors to transfer profits in two main cases.
Annual Profit Repatriation Vietnam
A foreign investor may transfer profits after the company ends its financial year. The company must first:
Complete its annual financial statements;
Obtain the required audit report;
Submit its annual corporate income tax return;
Pay or resolve all taxes and other State obligations;
Check that no accumulated losses remain;
Approve the profit distribution; and
Notify the tax authority.
The company should not pay dividends based only on monthly or quarterly results.
Remittance When an Investment Ends
An investor may transfer its remaining profits when it closes a company or ends an investment project.
The company must complete its final accounts, taxes and closure duties first. It should record profit payments and the return of capital as separate amounts.
Can a Company Transfer Profits If It Has Past Losses?
No. A company cannot transfer annual profits if past losses remain after it applies the current-year profit.
For example, a company has VND 5 billion in past losses. It earns VND 3 billion this year. After using that profit to reduce the losses, VND 2 billion in losses remains. The company cannot distribute the VND 3 billion.
If the company earns VND 7 billion, it may use VND 5 billion to cover the past losses. The remaining VND 2 billion may be available for payment after tax.
The company must use its completed financial records. Having enough money in the bank account does not prove that it can pay profits.
How Much Profit Can the Investor Transfer?
The company can use this basic formula:
Profit available for transfer = Current after-tax profit + retained profit from previous years − past losses − reinvestment − previous payments.
The company should compare the result with:
Its audited financial statements;
Its annual corporate income tax return;
Previous profit decisions;
Previous overseas transfers;
The investor’s ownership percentage; and
Any profit kept in Vietnam.
The investor may keep part of the profit in Vietnam for long-term business growth. The company must deduct that amount from the proposed overseas transfer.
Profit Repatriation Process
Step 1: Complete the Annual Accounts
The company should close its accounting records and confirm its revenue, expenses, taxes, profit and past losses.
It should also resolve any difference between its accounting records and tax returns.
Step 2: Complete the Audit and Tax Return
The company should obtain its audited financial statements and submit its CIT finalization.
It should then check its tax account. Unpaid tax, interest or penalties may delay the transfer.
Step 3: Approve the Profit Payment
The company must issue the correct corporate decision. This may be an owner’s decision, members’ resolution or shareholders’ resolution.
The document should state:
The relevant financial year;
The foreign investor’s name;
The investor’s ownership percentage;
The gross profit payment;
Any tax withheld;
The net payment;
The currency; and
The person authorized to arrange the transfer.
Step 4: Notify the Tax Authority
The foreign investor may file the notice directly. It may also authorize the Vietnamese company to file it.
The tax authority must receive the notice at least seven working days before the transfer. The company should keep proof of the submission date.
This notice is not a separate profit transfer license. However, the company should resolve any question from the tax authority before sending the money.
Step 5: Prepare the Bank Documents
The company should ask its bank for an updated checklist. Each bank may apply its own document review process.
The bank will check the amount, overseas recipient, payment purpose and supporting records. It may ask for more information to meet foreign exchange and anti-money laundering rules.
Step 6: Transfer the Profit
The bank can convert Vietnamese dong into foreign currency if needed.
The payment instruction should clearly state its purpose. For example:
“Transfer of after-tax profit for financial year 2025 under the profit distribution decision dated [date].”
The amount and recipient must match the company’s decision and tax notice.
Which Bank Account Should the Company Use?
Circular No. 38/2026/TT-NHNN requires qualifying foreign investment profits to pass through the relevant investment capital account.
The company should ask its bank to confirm:
Which account it must use;
Whether the account is in Vietnamese dong or foreign currency;
Whether its existing account needs an update;
Whether it must move money from its operating account first; and
Whether the bank supports the chosen transfer currency.
Older documents may call this account a direct investment capital account or DICA.
Read more: Investment capital account in Vietnam
Documents Required for Profit Remittance
A bank may request:
Enterprise Registration Certificate;
Investment Registration Certificate, if applicable;
Company charter;
Proof of the investor’s ownership;
Audited financial statements;
Annual corporate income tax return;
Tax payment records;
Profit calculation;
Corporate decision or resolution;
Profit remittance notice;
Proof that the company filed the notice;
Investment capital account statements;
Overseas bank details; and
Power of attorney, if applicable.
The bank may request other records. The company should obtain the checklist before it files the tax notice.
Tax on Profit Payments
Foreign Corporate Investors
Vietnam generally does not apply an extra dividend withholding tax to after-tax profits paid to a foreign corporate investor.
This treatment only applies to a true profit distribution. Vietnam applies separate tax rules to service fees, royalties and interest.
Foreign Individual Investors
Vietnam treats profit paid to an individual as capital investment income.
Under Law No. 109/2025/QH15, this income is generally subject to 5% personal income tax. The Vietnamese company must withhold this tax before it transfers the net payment.
Common Reasons for Delays
A bank may delay the transfer when:
Past losses remain;
The payment exceeds retained profit;
The company has unpaid tax;
Seven working days have not passed;
The documents show different amounts;
The company uses the wrong account;
The overseas recipient is not the registered investor; or
The company has not provided all required records.
How VINEX Can Help
VINEX can help foreign-invested companies review their profits, taxes and bank documents before making an overseas transfer.
Our support may include:
Checking past losses and profit available for payment;
Reviewing tax obligations;
Preparing the corporate decision;
Preparing the tax notice;
Checking personal income tax;
Preparing the bank documents; and
Coordinating with the company’s bank.
Contact VINEX before approving a profit payment to reduce the risk of delay or document rejection.
Frequently Asked Questions
Can an investor transfer profits during the financial year?
Annual profit transfers normally take place after the financial year ends. The company must first complete its audit and annual tax return.
Can the company transfer profits if it has past losses?
No. The company must first use its profits to cover past losses.
Does the tax authority need to approve the transfer?
The investor must notify the tax authority at least seven working days before the payment. This is a notice rather than an application for a separate license.
Is profit paid to a foreign company taxable?
Vietnam generally does not charge an extra dividend withholding tax on after-tax profits paid to a foreign corporate investor.
Is profit paid to a foreign individual taxable?
Yes. Vietnam generally applies 5% personal income tax to capital investment income paid to an individual.
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