Procedures for notification of extension of profit transfer deadline of investment projects

Article overview

Notice of extension of profit transfer deadline of investment projects This is a common activity for overseas investors. Investors will have a certain period of time from the date of the tax finalization report to transfer profits to Vietnam. If it is necessary to extend the deadline, the investor must notify the competent authority. This article will provide detailed instructions on procedures, forms and regulations related to extending the investment profit transfer period.

 Procedures for extending the profit transfer deadline
Procedures for extending the profit transfer deadline

How long is the profit transfer deadline of the investment project?

Pursuant to Article 68 of the Law on Investment 2020, investors are obliged to transfer all profits earned and other income from overseas investments to Vietnam within 6 months from the date of the final settlement report. tax or documents with equivalent legal value according to the provisions of the law of the investment receiving country (except for the case of retaining profits as prescribed in Article 67 of the Law on Investment 2020).

This is the time period during which investors must complete the transfer of all profits earned and other income from investment activities abroad to Vietnam.

Compliance with this deadline helps ensure transparency in overseas investment activities and compliance with Vietnamese law on foreign exchange management. If investors cannot repatriate profits within the prescribed time limit, they need to carry out notification procedures to extend the profit transfer time limit to avoid violating legal regulations and related sanctions.

In any case, it is possible to request an extension of the profit transfer deadline

Investors can request to extend the profit transfer period in case they cannot transfer profits and other income to Vietnam within the above 6-month period. These situations may include:

  • Investment projects encounter financial difficulties and are not able to repatriate profits;
  • Profits need to be reinvested in the project according to the requirements of the host country;
  • There are problems with legal procedures in the investment-receiving country, making money transfer difficult;
  • Profits need to be retained to meet the project’s financial obligations;

In these cases, investors need to carry out procedures to notify the extension of the profit transfer period to be considered for an extension of up to 12 months. This notification helps the management agency understand the situation and reasons for the project’s delayed profit transfer, thereby providing a basis for considering and allowing a reasonable extension of the deadline.

CSPL: Clause 2, Article 68 of the Law on Investment 2020.

Regulations on the extension of investment project profit transfer deadline
Regulations on the extension of investment project profit transfer deadline

Procedures for extending the profit transfer deadline

Sample notice of extension of investment project profit transfer deadline

Procedures for extending the profit transfer deadline include the following specific steps:

Step 1: Prepare notification documents

  • Investors need to prepare a written notice to extend the profit transfer deadline sample B.I.12 prescribed in Circular 03/2021/TT-BKHDT.
  • This form includes basic information about the investment project, the amount of profits not yet repatriated to the country, the reason for the extension and the proposed extension period.

Step 2: Submit notification documents

  • The investor submits a written notification to the Ministry of Planning and Investment and the State Bank of Vietnam.
  • Applications can be submitted directly at the agency’s headquarters or online via the National Investment Information System.

Step 3: Receive and process notifications

The receiving agency will review the notification content. If the notice is valid, the investor is considered to have complied with the regulations and is allowed to extend the profit transfer period to no more than 12 months from the original expiration date.

The form for notification of extension of time limit for transferring investment project profits abroad is specified in Form B.I.12 issued with Circular 03/2021/TT-BKHDT. This template includes the following main contents:

  • Information about investors: Name, address, legal representative
  • Information about investment projects: Project name, location, investment field, number of Foreign Investment Registration Certificate
  • Information about profit transfer: Amount of profit not yet transferred back to the country, reason for not transferring, time for extension request
  • Investor’s commitment to the accuracy of declared information

Investors need to completely and accurately fill in the information in this form to ensure the validity of the notification when sent to the competent authority.

Which agency should the notification form be sent to for approval?

The B.I.12 notification form needs to be sent to the Ministry of Planning and Investment and the State Bank of Vietnam for review and approval. Specifically:

  • For the Ministry of Planning and Investment: The investor sends a notice to the Foreign Investment Department – a unit under the Ministry in charge of managing overseas investment activities.
  • For the State Bank of Vietnam: The notice is sent to the Foreign Exchange Management Department – the unit in charge of managing investors’ overseas money transfer activities.

Sending notifications to both of these agencies helps ensure coordination in state management of overseas investment activities, while also creating favorable conditions for investors during project implementation. judgment.

 Notice form for extending the profit transfer deadline of an investment project
Notice form for extending the profit transfer deadline of an investment project

Consulting on forms of domestic and foreign investment profit transfer at Long Phan

Regarding the transfer of investment profits domestically and internationally, Long Phan has some recommendations as follows:

  • Consulting on legal regulations on transferring profits from investment activities abroad;
  • Consulting on the process of transferring profits from abroad to Vietnam;
  • Support customers in drafting and collecting necessary legal documents;
  • Support customers to submit documents and work with competent authorities;
  • Providing tax optimization solutions when transferring profits between countries, ensuring compliance with corporate income tax regulations;
  • Consulting on solutions to protect profits during the process of moving from abroad to Vietnam or vice versa, to minimize financial and legal risks.

Notification of extending the profit transfer deadline of an investment project is an important procedure to help investors comply with legal regulations and optimize investment efficiency. Customers need to pay attention to following the correct process, using appropriate forms and submitting documents fully and on time. For detailed advice on this procedure as well as other legal issues related to investment, please contact Long Phan via hotline. 0906735386.