Repatriating profits and dividends from Vietnam: procedures, tax and timing

The short answer

Foreign investors may remit profits from direct investment in Vietnam abroad when all of the following conditions are met:

• the company has fulfilled its financial obligations to the State;

• the company has filed audited financial statements and the CIT finalisation for the financial year;

• there are no accumulated losses after carrying forward losses under the rules.

Procedurally, the investor (or the company acting under authorisation) notifies the directly managing tax authority at least 7 working days in advance. Funds must go through the direct investment capital account (DICA). This is a notification, not an application for approval.

On tax:

• dividends paid to foreign corporate investors are currently not subject to withholding in Vietnam, as the profits have already borne CIT at company level;

• dividends paid to individuals are subject to 5% PIT on investment income.

Why does repatriation often take longer than expected?

The procedure is not complex, but it depends on a chain of consecutive milestones: the statutory audit, the CIT finalisation, the profit distribution resolution, the tax notification and the bank file. If any one milestone slips, the whole remittance plan is delayed.

In addition, many foreign-invested companies make a profit in the current year but still carry accumulated losses from earlier years. In that case, profits cannot yet be remitted, however urgently the parent needs the cash.

Standard roadmap (financial year ending 31 December)

Step	Action	Indicative timing
1	Complete the audit of the financial statements	Q1 of the following year
2	File the CIT finalisation and audited financial statements. Pay any outstanding tax	By the finalisation deadline
3	The members' council or general meeting of shareholders approves the profit distribution, after appropriating funds under the charter	After the audit report
4	Prepare the profit remittance notification in the prescribed form and send it to the directly managing tax authority	At least 7 working days before the planned remittance
5	Prepare the bank file. Remit through the direct investment capital account	After the notification period

Note: During these 7 working days, the tax authority may check for tax debts and request explanations. Businesses should check their tax account position on the system in advance, to avoid being "blocked" by small debts or misposted payments.

Dealing with accumulated losses

Lawful options businesses may consider include:

• Waiting until future profits absorb the accumulated losses, then remitting.

• Reducing charter capital to offset losses under the Law on Enterprises, where conditions are met. The impact on the investment registration certificate and capital commitments needs to be assessed.

• Reviewing transfer pricing policy: persistent losses in a "low-risk" entity both block repatriation and create transfer pricing risk.

• Using other payment channels with genuine substance: interest on shareholder loans, service fees and royalties. These must be backed by real contracts, priced at arm's length and subject to FCT withholding. They are not a way to "get around" the repatriation rules.

Tax on repatriation

Recipient	Vietnamese tax	Notes
Foreign organisation	No withholding on distributed profits	Profits have already borne CIT at company level in Vietnam
Foreign individual	5% PIT on investment income, withheld by the company	A tax treaty may be considered if conditions are met
Profits received in kind	As above, plus export procedures	Value of goods converted as prescribed

In the investor's home country, the profits received may be taxed under local rules, with corresponding credit or exemption mechanisms. For groups within the global minimum tax, distribution policy should also be considered as part of the group's overall tax plan.

Common mistakes

1. Remitting before the finalisation is complete or while losses remain. The result is penalties and having to unwind the cash flow.

2. Failing to notify, or notifying late relative to the 7-working-day requirement.

3. Remitting through an ordinary current account instead of the direct investment capital account.

4. Failing to withhold 5% PIT on profits distributed to individual investors.

5. Distributing more than the undistributed after-tax profit shown in the audited financial statements.

FAQs

Is the tax authority's approval needed to remit profits abroad?

No. It is a notification procedure. The company sends the notification at least 7 working days in advance. If no explanation is requested, it remits through the bank as notified.

Can a company with accumulated losses remit profits?

No. Investors may not remit profits for a year in which the financial statements still show accumulated losses after carrying forward losses under the rules.

Is there additional tax when remitting profits to an overseas parent?

Currently, profits distributed to foreign organisations are not subject to further Vietnamese withholding tax. Individuals receiving dividends pay 5% PIT.

Can profits be remitted several times a year?

The principle is annual remittance after the financial year ends and obligations are completed. Special rules apply to remittances on termination of a project or cessation of operations.

Legal basis

• Law on Investment No. 143/2025/QH15 (foreign investors' right to transfer assets abroad).

• Circular No. 186/2010/TT-BTC on remitting profits abroad.

• State Bank of Vietnam regulations on foreign exchange management for foreign direct investment.

• PIT Law No. 109/2025/QH15 and Decree No. 253/2026/ND-CP.

• Law on Enterprises 2020 (as amended in 2025).

How W&A can help

Remitting profits on time is the result of a year of disciplined financial and tax management. W&A supports foreign investors with:

• Planning profit distributions and remittance schedules aligned with audit and finalisation timelines.

• Checking repatriation conditions: accumulated losses, tax obligations and undistributed profits.

• Drafting distribution resolutions, tax notifications and bank documentation.

• Advice on dealing with accumulated losses and on intra-group payment channels at arm's length.

• Accounting, CIT finalisation and FCT for foreign-invested companies.