Consulting on transferring profits from Vietnam to foreign countries for investors

Article overview

Transferring profits from Vietnam abroad to investors not only helps optimize cash flow but also facilitates business expansion and development in international markets. Implementing this process properly will ensure transparency and compliance with legal regulations, thereby helping investors maximize financial benefits and build trust with international partners. Next, let’s learn with Long Phan about some of the contents of this procedure.

How to transfer profits from Vietnam abroad to investors?
How to transfer profits from Vietnam abroad to investors?

Time to transfer investors’ profits from Vietnam abroad

According to Clause 1 and Clause 2, Article 4 of Circular 186/2010/TT-BTC, the time to transfer profits abroad is as follows:

  • Annual profit transfer: Foreign investors have the right to transfer annual profits after the end of the fiscal year, provided that the enterprise has fulfilled its financial obligations to the State of Vietnam and submitted approved financial reports. Auditing and finalizing corporate income tax declarations for tax authorities.
  • Transfer profits at the end of investment activities: Investors can also transfer profits abroad at the end of investment activities, with similar conditions: completing financial obligations, submitting approved financial reports. audit and tax finalization declaration, and perform obligations under the Law on Tax Administration.

In short, profits can be transferred abroad annually or at the end of investment activities, provided that financial obligations according to regulations are fulfilled.

When is it possible for investors to start transferring profits abroad?
When is it possible for investors to start transferring profits abroad?

Determine the amount of profits transferred abroad to foreign investors

According to the provisions of Clauses 1 and 2, Article 3 of Circular 186/2010/TT-BTC, the amount of profits transferred abroad by foreign investors is determined as follows:

  1. Annual profits transferred abroad:
  • This profit is determined as the profit divided or earned from direct investment activities in the fiscal year, based on the audited financial statements and corporate income tax finalization declaration of the enterprise. in which investors participate.
  • Add (+) any untransferred profits from previous years.
  • Minus (-) the amounts that the investor has used or committed to use to reinvest in Vietnam, as well as the profits used to spend on production and business activities or for needs. individuals in Vietnam.
  1. Profits transferred abroad at the end of investment activities:
  • The total profit earned by foreign investors during the direct investment process in Vietnam will be calculated.
  • Minus (-) profits used for reinvestment, amounts transferred abroad during investment activities, and amounts used for other expenses in Vietnam.

Form of transferring profits from Vietnam to foreign countries for investors

The form of transferring profits from Vietnam abroad to investors is specified in Clause 2, Article 2 of Circular 186/2010/TT-BTC as follows:

Profits can be transferred abroad in money or in kind:

  • In money: Comply with legal regulations on foreign exchange management.
  • In kind: Value must be converted according to import and export regulations and related regulations.
Machinery is also profit in kind and can be shipped abroad
Machinery is also profit in kind and can be shipped abroad

When are investors not allowed to transfer profits from Vietnam abroad?

According to Clause 3, Article 3 of Circular 186/2010/TT-BTC, foreign investors are not allowed to transfer profits abroad when profits are distributed or earned from direct investment activities in Vietnam in the year in which they arise. profit, but the financial statements of the enterprise in which the investor participates in investment still have accumulated losses after carrying forward losses according to the provisions of law on corporate income tax.

Consulting services for transferring profits from Vietnam to foreign countries for investors

At Long Phan, we provide consulting services to transfer profits from Vietnam abroad to investors in a professional and effective way.

Long Phan provides a range of services related to profit transfer, including:

  • Provides detailed information on regulations related to transferring profits abroad.
  • Support investors in drafting and completing necessary documents to apply for profit transfer.
  • Representing customers in working with competent authorities.
  • Support analysis and evaluation of profits distributed or earned from investment activities, helping investors determine the amount of profits that can be transferred abroad.
  • Consulting on optimal solutions in case of disputes arising related to the transfer of profits abroad.

Transferring profits from Vietnam abroad to investors is an important process, requiring strict compliance with regulations and financial obligations. To carry out procedures effectively, investors need professional support from consulting services. At Long Phan, we accompany you on your journey to develop and optimize profits in the global market. Contact Long Phan immediately via hotline: 0906735386 to receive the most enthusiastic advice!