Find out the current policy and regulations of Vietnam regarding money transfer out of Vietnam applied to foreigners and foreign-owned companies in this Article.

I. Foreigners transferring money out of Vietnam

According to Article 7.3 of the Decree 70/2014/ND-CP, foreign residents and non-resident travelers who have a foreign currency in their accounts in Vietnam, or a lawful foreign currency income source, are allowed to transfer or bring foreign currencies abroad.

In case they have a lawful income source in Vietnam dong (VND), they may buy foreign currency to transfer or bring out of Vietnam.

Individuals are required to provide supporting documents to the banks when purchasing currencies. It is unnecessary, however, to present documents proving that tax obligation had been fulfilled.

II. How foreign-owned companies can transfer money out of Vietnam?

Below are a few examples of the specific instances where foreign-owned companies are legally allowed to transfer money out of Vietnam according to the prevailing regulations (*):

1. Payment related to the export and import of goods and services from abroad. All transactions must be made by bank transfer through an authorized credit institution;
2. Pay salaries, bonuses, and allowances in labor contracts in foreign currency by transfer or cash to non-residents who are foreigners working for that company;
3. Overseas transfer of profits and other legal revenues in foreign currency from foreign investors’ foreign direct investment activities in Vietnam;
4. Overseas transfer of investment capital in foreign currencies by foreign investors in case of capital reduction, finish, termination of investment projects, BCC, PPP contracts in accordance with Law on Investment;
5. Transfers relating to foreign loans in foreign currencies of FDI enterprises in accordance with the law on overseas loan receipt and repayment of enterprises;
6. Other lawful expenditures in Vietnamese dong relate to foreign direct investment activities in Vietnam.

III. Procedures for annually transferring profit of foreign-owned companies out of Vietnam (**)

1. What profits are you allowed to transfer out of Vietnam?

Profits remitted abroad annually is the profit that foreign investors are divided or earned in the fiscal year from direct investment activities, based on audited financial statements and final settlement declarations of corporate income tax of enterprises in which foreign investors invest, plus (+) other profits such as profits that have not yet been carried over from previous years; minus (-) amounts used or committed by foreign investors to reinvest in Vietnam, profits used by foreign investors to cover expenses of investors foreign investors for production and business activities or for personal needs of foreign investors in Vietnam.

Foreign investors are not allowed to remit abroad the profit divided or earned from direct investment activities in Vietnam in the year where the profit is generated, in the case in the financial statements show that profits are generated still have accumulated losses, after the loss has been carried forward in accordance with the Law on Corporate Income Tax.

2. What time of the year can you annually remit profits out of Vietnam?

Foreign investors are entitled to annually transfer profits distributed or obtained from direct investment activities in Vietnam abroad at the end of the fiscal year, after the company has fulfilled its financial obligations to the State of Vietnam in accordance with the law, has submitted audited financial statements and corporate income tax finalization declarations for the fiscal year to the management tax authority.

3. Declaring a Notice of profit transfer out of Vietnam

Foreign investors prepare a Notice of Profit Transfer Out of Vietnam, or authorize the Company in which foreign investors participate to notify the transfer of profits abroad according to the form below. After that, the Notice shall be submitted to the managing tax authority, at least 07 working days before transferring profits abroad.

Footnotes:

(*) Legal basis: