Profit Repatriation in Vietnam: A Brief Guide in 2026

For the first time, Vietnam has incorporated its profit repatriation regulation into its tax administration framework, with the issuance of Decree No. 252/2026/ND-CP (“Decree 252”). Previously, these rules were primarily governed under Circular No. 186/2010/TT-BTC (“Circular 186”).

Vietnam has established clear regulations regarding profit repatriation for foreign investors, aiming to create a transparent and orderly process for foreign investors. 

Vietnam’s determination of profit repatriation

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Circular 186 governs foreign investors’ transfer of profits abroad from Vietnam. Profits eligible for repatriation must be legally derived from direct investment activities in Vietnam, as outlined in the Investment Law, and all financial obligations to the State of Vietnam must be fulfilled before repatriation.

Profits transferred abroad can be in cash or in kind and must comply with the following rules:

• Cash profits must adhere to the provisions of foreign exchange management laws;
• Transfers in kind must have their value converted according to import and export laws and other relevant regulations.

Timeline for profit repatriation

Annual transfer of profits abroad

Foreign investors can transfer profits earned or distributed from direct investment activities in Vietnam to their home country at the end of the fiscal year. This transfer is permitted once the enterprise in which the foreign investor has invested has met the following conditions:

• Fulfilled its financial obligations to the Vietnamese government as mandated by law; and
• Submitted its audited financial statements and corporate income tax finalisation declarations for the fiscal year to the direct tax authority.

Transfer profits abroad at the end of direct investment activities in Vietnam

Foreign investors may transfer profits abroad after completing their direct investment activities in Vietnam if the enterprise in which they have invested has met the following conditions:

• Fulfilled its financial obligations to the Vietnamese government in accordance with the law;
• Submitted audited financial statements and corporate income tax declarations to the direct tax authority; and
• Fully complied with other requirements of the 2019 Tax Administration Law.

Condition for profit repatriation

Article 69 of the Enterprises Law 2020 (amended by Law No. 76/2025/QH15) mandates that a company’s profit shall only be distributed to its members if:

• The company’s tax liabilities and other financial obligations have been fulfilled as prescribed by law; and
• The company is able to fully pay its due debts and other liabilities after profit is distributed.

In addition, Decree 252 provides that foreign investors may repatriate profits under the following conditions:

• Annual profit remittance: Profits may be remitted at the end of the financial year after the invested enterprise has:
  • Fulfilled all financial obligations to the Vietnamese State;
  • Submitted its audited financial statements and annual corporate income tax (CIT) finalisation return to the tax authorities;
  • Fully paid all due taxes, other state obligations, late payment interest, and administrative penalties; and
  • Cleared all outstanding tax debts at the time of remittance.
• Upon termination of an investment project: Remaining profits may be remitted only after the invested enterprise has:
  • Fulfilled all financial obligations;
  • Submitted its audited financial statements and CIT finalisation return; and
  • Complied with all obligations under the Law on Tax Administration, including taxes that have not yet reached their statutory payment deadlines.
• Restriction on profit repatriation: Foreign investors are not permitted to repatriate profits if the invested enterprise continues to report accumulated losses after applying loss carry-forwards in accordance with Vietnam’s corporate income tax regulations, even if the enterprise generated profits during the current financial year.

Determination of the value of profits remitted abroad

The profit to be repatriated abroad is determined by the following formula:

Remitted profit = Annual abroad remitted profits – (Reinvested profit + Profit allocated for expenditures) + Other profit items

Where:

• Annual abroad remitted profits: This refers to the profits earned by foreign investors in a fiscal year based on audited financial statements and tax declarations. The annual profits are determined according to the audit report and the finalisation of the corporation’s income tax each year.
• Reinvested Profit: This refers to the profits that foreign investors have utilised or committed to reinvesting in Vietnam.
• Profit allocated for expenditures: This refers to the profits that foreign investors have used for various business-related expenses or personal needs in Vietnam.
• Other profit items: These items could include unremitted profits from previous years.

Notification of profits remittance abroad

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In accordance with Article 5 of Circular 186, foreign investors are required to either directly submit notifications or authorise the companies they have invested in to facilitate the submission of notifications regarding the remittance of profits abroad.

These notifications must adhere to the specific forms outlined in the Circular and should be directed to the relevant tax offices overseeing the enterprises in which foreign investors have invested.

It is essential that these notifications be lodged at least seven working days prior to the scheduled remittance of profits to ensure compliance with the regulatory framework.

Conclusion

Vietnam has established a structured framework for the repatriation of profits for foreign investors, ensuring compliance with regulations and financial obligations. The process requires foreign investors to fulfil tax liabilities, submit necessary documentation, and adhere to specific timelines to facilitate the transfer of profits. By following these guidelines, investors can efficiently repatriate their earnings while contributing to a transparent investment environment in Vietnam.

This article was originally published on 24 March 2025. It was last updated on 31 July 2026.

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