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Transferring profits abroad of FDI enterprises is the process of transferring legal profits from investment activities in Vietnam to foreign countries. Foreign-invested enterprises need to strictly comply with the provisions of Vietnamese law to carry out transparent and regulated profit transfers. The following article will explain in detail the specific conditions, procedures and requirements in the process of transferring profits abroad.
Pursuant to Article 2 of Circular 186/2010/TT-BTC, profits transferred by foreign investors from Vietnam to foreign countries are understood as legal profits shared or earned from direct investment activities in Vietnam under the Law on Investment, after fully performing financial obligations to the State of Vietnam as prescribed.
The importance of profit shifting
Transferring foreign investors’ profits abroad is important not only for investors but also for businesses. Here are some benefits of transferring profits abroad for investors:
According to the provisions of Circular 186/2010/TT-BTC of the Ministry of Finance and related legal documents, foreign investors must meet the following conditions to transfer profits abroad:
According to the current Law on Investment, after fulfilling all financial obligations to the State of Vietnam according to regulations.
Profits transferred from Vietnam to foreign countries can be in money or in kind.
There are two times when profits are transferred from Vietnam to foreign countries:
Step 1: Determine the amount of profits to be transferred abroad (Article 3 of Circular 186/2010/TT-BTC)
Step 2: Determine when to transfer profits abroad (Article 4 of Circular 186/2010/TT – BTC)
Step 3: Notification of transferring profits abroad (Article 5 of Circular 186/2010/TT – BTC)
At least 07 working days before transferring profits abroad, the foreign investor directly or authorizes the enterprise in which the foreign investor participates in investing shall notify the transfer of profits abroad. sent to the tax authority directly managing the enterprise in which the foreign investor participates in investment, at least 07 working days before transferring profits abroad.
The content of the notification form to transfer profits abroad must provide complete, accurate, and detailed information as follows (notification form is specified in Circular 186/2010/TT-BTC):
At Long Phan, we provide comprehensive support services in transferring profits abroad for FDI enterprises. Our services include:
>>> Reference: Consulting on transferring profits from Vietnam to foreign countries for investors.
Accurate profit transfer and compliance with regulations help FDI enterprises ensure transparency and avoid risks. We provide professional solutions, helping the process of transferring profits abroad of FDI enterprises smoothly and effectively. Please contact the hotline 0906735386 for detailed advice and best support from the Long Phan team of experts.
Note: The content of the articles published on the website of Long Phan Investment Consulting Company is for reference only regarding the application of legal policies. Depending on the time, subject, and amendments, supplements, and replacements of legal policies and legal documents, the consulting content may no longer be appropriate for the situation you are facing or need legal advice on. In case you need specific and in-depth advice according to each case or incident, please contact us through the methods below. With our enthusiasm and dedication, we believe that Long Phan will be a reliable solution provider for our clients.
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