Profit Remittance by FDI Companies in Vietnam | Tax and Legal Considerations and Practical Procedures
A detailed explanation, based on Ministry of Finance Circular No. 186/2010/TT-BTC, of the conditions, timing, and required procedures for foreign-invested enterprises (FIEs) in Vietnam to remit profit to their home country or elsewhere. This article clearly organizes important points that Japanese companies often overlook — audited financial statements, completion of tax obligations, and the requirement to remit through the investment capital account. It also addresses the treatment of accumulated losses and the final remittance upon liquidation. NEXORA LAWFIRM works together with accounting firms to provide end-to-end practical support for the lawful overseas remittance of investment profit by Japanese companies — including negotiations with the tax authorities, obtaining tax-obligation completion confirmations, preparing and submitting notifications, and liaising with banks.
Ministry of Finance Circular No. 186/2010/TT-BTC (dated November 18, 2010) remains the current legal basis for foreign-invested enterprises (FIEs) in Vietnam to remit profit earned in Vietnam to their home country or elsewhere.
This Circular was issued under the former 2005 Investment Law, which has since been repealed. However, because no new circular or decree has been issued to repeal or invalidate this Circular, it continues to serve as the official legal basis governing profit remittance by FIEs.
Accordingly, foreign-invested companies operating in Vietnam must continue to comply with this Circular when remitting profit. In particular, this Circular remains an important guideline in practice — for confirming procedures conditioned on completion of tax obligations and settlement reporting, remittance timing, and reporting obligations.
01 - What Profit Can Be Remitted Overseas, and How Is It Calculated?
Under Ministry of Finance Circular No. 186/2010/TT-BTC, the method for calculating remittable profit falls into the following two cases.
① Annual profit remittance (during the ordinary course of operations)
The amount of profit remittable in a given year is calculated as follows:
(A) Dividends or profit received by the foreign investor for that year, based on the audited financial statements and corporate income tax finalization return, ＋（B）undistributed profit carried forward from the prior year(s) －（C）amounts the foreign investor has used or committed to use for reinvestment within Vietnam －（D）profit used by the foreign investor for business operations or personal expenses within Vietnam
In other words, the calculation is not limited to the current year's "dividend" alone — it also includes profit carried forward from prior years, while amounts reinvested or used locally are deducted.
② Remittance upon termination of investment activity (business liquidation/exit)
Where a foreign investor terminates its direct investment activity in Vietnam, the profit ultimately remittable is calculated as follows:
（A）total profit earned during the investment period in Vietnam －（B）amounts already used for reinvestment －（C）profit already remitted overseas during the investment period－（D）profit used for local operations or personal expenses
In this case as well, the substantive profit earned over the entire investment period is the relevant figure, and strict controls are required to prevent double or excess remittance.
02 - Can Profit Be Remitted Overseas Even Where There Is Accumulated Loss?
In short, where there is accumulated loss, a foreign investor cannot remit profit earned in Vietnam overseas.
Under Ministry of Finance Circular No. 186/2010/TT-BTC, even where the invested company records a profit for a given fiscal year, distribution of dividends and overseas remittance are not permitted if accumulated losses remain as of the end of that fiscal year. This is assessed based on the accumulated loss remaining after applying the "loss carry-forward" mechanism under the Law on Corporate Income Tax.
As approval authority for such matters is delegated to the provincial level, each provincial government gains greater flexibility and strategic latitude in attracting investment and selecting partners, which is expected to further strengthen competitiveness in attracting foreign investment.
03 - When Can a Foreign Investor Remit Profit Out of Vietnam?
Clear timing and conditions are established for a foreign investor to lawfully remit profit earned in Vietnam overseas. Under Ministry of Finance Circular No. 186/2010/TT-BTC, profit remittance is permitted in the following two cases.
① Regular annual remittance (during the operating period)
At the end of each fiscal year, a foreign investor may remit profit earned from the invested company overseas once all of the following conditions are satisfied.
The invested company has fulfilled all of its tax obligations in Vietnam (corporate income tax, etc.)
Audited financial statements have been prepared
The corporate income tax finalization return has been submitted to the direct tax authority
Once these are satisfied, the foreign investor may lawfully remit its allocated after-tax profit to its home country or elsewhere.
② Final remittance upon termination of investment (business liquidation/exit)
Where a foreign investor terminates its direct investment in Vietnam, profit remittance is likewise permitted once all of the following conditions are satisfied.
The invested company has fulfilled all of its financial obligations to the State
Audited financial statements and the corporate income tax finalization return have been submitted
All other tax payment and reporting obligations under Vietnam's Tax Administration Law have been fully performed
In short, full completion of tax and financial obligations is the basic precondition for remitting profit overseas.
04 - What Is the Procedure for Remitting Profit Overseas?
For a foreign-invested enterprise in Vietnam to remit profit overseas, a series of procedures must be carried out accurately in advance. The steps and required documents are organized below.
Step
Required Actions
【Step 1】Tax and accounting preparation
Prior to remittance, the following preparations must be completed:
Prepare and finalize the audited financial statements for the relevant fiscal year
Prepare a resolution/minutes on profit distribution based on the company charter (shareholders' meeting, members' council, or board resolution)
Submit the audited financial statements to the tax authority and other relevant authorities
Prepare and submit the corporate income tax (CIT) finalization return
Obtain a confirmation of completed tax obligations (issued by the tax authority)
Submit a notification of overseas remittance of foreign investment profit (using the form below)
※ This notification may be submitted by the foreign investor itself, or on its behalf by the enterprise holding the foreign investment capital.
【Step 2】Bank remittance procedure
From the 7th business day after notifying the tax authority, the remittance may be carried out at the bank where the investment capital account is held.
【List of Required Documents】
The following documents should be prepared for the tax-authority notification and the bank procedure prior to remittance:
Resolution on profit distribution by the shareholders' meeting／members' council／board of directors
Audited financial statements for the relevant year
CIT finalization return as submitted to the tax authority
Confirmation of completed tax obligations (issued by the tax authority)
Notification of overseas remittance
05 - Practical Points to Note When Remitting Profit Overseas
The following points should be understood in advance when remitting profit.
✅ Obtaining the tax-obligation completion confirmation takes time
To remit profit overseas, a foreign investor must obtain a "confirmation of completed tax obligations" issued by the competent tax authority. This document certifies that the company has fulfilled all of its financial and tax obligations in Vietnam.
In practice, this process often takes around two to three weeks depending on the locality, so it is advisable to build sufficient lead time into the schedule.
✅ Remittance may only be made through the "investment capital account"
Under Vietnamese law, a foreign investor's profit remittance must be made through a "Direct Investment Capital Account." Remittance through any other account may be regarded as unlawful, so particular care is required.
Bearing the above points in mind, we recommend consulting a legal or tax professional as needed, in order to remain compliant while ensuring a smooth remittance process.
Attachment No. 1: Format of the Notification of Overseas Remittance of Foreign Investment Profit
Socialist Republic of Vietnam
Independence - Freedom - Happiness
Notification
Notification of Overseas Remittance of Profit
Fiscal Year ……
To：.....................................
1. Name of foreign investor：..............................................................................
Nationality：................................................................................................
□ Corporate entity □ Individual
2. Name of the invested company (in which the foreign investor holds capital)：......................................................
Investment Registration Certificate No.： ...........................................................................
Date of issuance： ............................................................................................
Registered address： ......................................................................................
Tax Identification Number (TIN)： ..........................................................................
3. Details of the profit remittance registered by the foreign investor:
No.
Item
Amount of Profit
I
Total profit received or accrued as dividends for the period
1. Dividends/profit from investment activity
2. Other profit
II
Amount of profit already used
1. Reinvestment
2. Other uses
III
Amount of profit to be remitted this time
4. Amount of profit to be remitted overseas this time:
Currency (denomination)： ..................................................................................
Remittance in kind (item, quantity, weight, value)： ...............................
※ For remittance in currency, funds are withdrawn from the following account: Account No. …………, Bank Name …………
The undersigned certifies that the information above is true and accurate, and undertakes full legal responsibility for the content of this notification.
……Year……Month……Day
Foreign Investor
Signature/seal (name and title to be stated)
（No signature required if authority has been delegated to the enterprise）
Legal Representative of the Company
Signature/seal (name and title to be stated)