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For a foreign investor, repatriating profits is the moment when business results in Vietnam become real cash for the parent company. But the transfer order is only the final step: before that, the company must have audited financial statements, a completed tax finalization and a valid profit distribution decision. This article sets out the whole chain of tasks in the correct order, based on the accounting experience of ACCA Consulting Vietnam with foreign-invested clients.
1. Conditions for remitting profits abroad
Investment law allows foreign investors to remit profits abroad once they have fulfilled their financial obligations to the Vietnamese State. In practice, banks and the tax authority look at the three groups of conditions below. Specific details (notification timing, forms) apply under current regulations, so the company should re-check them before each remittance.
| Condition group | Content | Evidence |
|---|---|---|
| Tax obligations | Annual corporate income tax (CIT/TNDN) finalized and all tax payable paid, with no tax arrears | CIT finalization return, tax payment receipts, obligation lookup on the e-tax portal |
| Financial results | Annual financial statements audited; the distribution does not create accumulated losses | Audited financial statements, schedule of undistributed profit after tax |
| Internal decision | The owner/Members' Council decides the amount of profit to distribute | Profit distribution decision or resolution, company charter |
A frequently overlooked point is the accumulated loss condition. If the company made losses in its early years, this year's profit must first offset those past losses. This situation is analysed with figures in can profits be remitted with accumulated losses?
2. Six steps from closing the books to the transfer order
- 1Year-end close
Close the books, reconcile balances and bank accounts, and count assets at the financial year-end.
- 2Financial statement audit
An independent audit firm issues the audit report on the annual financial statements.
- 3CIT finalization
File the finalization return and pay any remaining tax before the deadline.
- 4Profit distribution decision
The owner/Members' Council issues a distribution decision stating the amount and the profit year.
- 5Notify the tax authority
Submit the notification of profit remittance abroad using the form and within the deadline under current regulations.
- 6Transfer order
Issue the transfer from the direct investment capital account (DICA) together with the documents the bank requires.
The order matters because each step relies on the result of the previous one. For example, the distribution decision must be based on audited figures, not provisional ones. If post-audit adjustments reduce profit, a decision made earlier may exceed the permitted amount.
3. Typical timeline during the year
For a financial year matching the calendar year, the annual financial statements and CIT finalization are due no later than 31 March of the following year. As a result, the previous year's profit can usually only be remitted from Q2 onwards. Companies that need funds sent to the parent company sooner should bring the audit schedule forward.
- December
Plan the stock count, sign the audit engagement, review non-deductible expenses
- January–February
Close the books, send files to the auditors, process adjusting entries
- By 31 March
Audit report issued, financial statements and CIT finalization filed, tax paid in full
- April
Members' Council/owner meeting decides on profit distribution; notification sent to the tax authority
- April–May
Submit documents to the bank and execute the transfer through the DICA
4. Example: calculating the amount that can be remitted
Assume a single-member foreign-owned limited liability company with no accumulated losses, accounting profit before tax for 2025 of VND 2 billion (≈ USD 78,400, approximate, at VND 25,500/USD), no disallowed expenses, and the standard CIT rate of 20%. The owner decides to retain VND 400 million as working capital.
Illustration with hypothetical figures. The actual tax rate depends on revenue size and the project's incentives.
View as table
| Profit before tax | 2,000,000,000 VND |
| CIT at 20% | 400,000,000 VND |
| Profit after tax | 1,600,000,000 VND |
| Retained as working capital | 400,000,000 VND |
| Planned remittance | 1,200,000,000 VND |
Note: profit distributed to the investor may give rise to other tax obligations depending on whether the investor is an organization or an individual. Determine this before remitting to avoid having to make supplementary filings later.
5. Checklist of documents banks typically require
Each bank has its own list, but most require the documents below. Preparing English translations in parallel helps the parent company approve faster.
- Audited annual financial statements (signed and stamped by the audit firm)
- Annual CIT finalization return and tax payment receipts
- Profit distribution decision/resolution of the owner or Members' Council
- Notification of profit remittance abroad submitted to the tax authority (with electronic submission confirmation)
- Current IRC, ERC and charter showing the investor's ownership ratio
- Details of the investor's receiving account abroad, in the investor's exact name on the IRC
- Calculation of distributable profit, reconciled to undistributed profit after tax
6. Common mistakes and how to prevent them
- Distributing based on unaudited figures: wait for the final audit report before issuing the distribution decision.
- Forgetting small tax debts: a few hundred thousand dong of late-payment interest is still a tax debt; check your obligations before submitting documents.
- Remitting profits mid-year: discuss carefully with your bank and advisers, as in most cases profits are only remitted after the annual finalization.
- Incomplete distribution decisions: state the profit year, amount, currency, expected exchange rate and beneficiary clearly.
FAQ
Can an FDI company remit profits every quarter?
Profits are usually remitted after the financial year-end, once audited financial statements and the tax finalization are in place. If you wish to remit during the year, check current regulations and consult your bank in advance.
Must the remittance go through the DICA?
Yes. Capital and profit transfers by foreign investors are made through the direct investment capital account opened at a licensed bank.
Can profit not remitted this year be remitted next year?
Yes. Undistributed profit after tax can be distributed in a later period, provided that at the time of distribution the tax obligation conditions are still met and no accumulated losses arise.
Does ACCA sign the profit repatriation documents on the company's behalf?
No. ACCA Consulting Vietnam prepares the figures, calculations and document pack; the company's legal representative signs and takes responsibility.
Get your profit repatriation file right the first time
ACCA Consulting Vietnam provides accounting services for FDI companies and reviews conditions and documents before you submit to the bank. Request a consultation.
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