What are the rules for transfer of foreign currency abroad before the issuance of the outward investment registration certificate in Vietnam?
What are the rules for transfer of foreign currency abroad before the issuance of the outward investment registration certificate in Vietnam?
Pursuant to Article 6 of Decree No. 124/2017/ND-CP stipulating the rules for transfer of foreign currency abroad before the issuance of the outward investment registration certificate in Vietnam as follows:
- The amount of foreign currency transferred abroad before the issuance of the outward investment registration certificate shall be included in the total outward investment capital and transferred through 01 foreign currency account at 01 credit institution of Vietnam before the issuance of the outward investment registration certificate.
- When applying for registration of outward investment-related forex transactions, the investor must inform the State Bank of Vietnam of the amount of foreign currency transferred abroad before being issued with the outward investment registration certificate in order to have such amount recorded as outward investment.
- When transferring foreign currency abroad before issuance of the outward investment registration certificate to the investor, the credit institution shall request the investor to provide appropriate documents to ensure that the foreign currency abroad before issuance of the outward investment registration certificate is transferred and expenses for investment preparation by the investor are provided as prescribed in the Law on Investment and Decree No. 124/2017/ND-CP; to inform the State Bank of Vietnam of the investor’s transfer of foreign currency through the account used for transfer of foreign currency abroad before issuance of the outward investment registration certificate at a credit institution.
- After the project is issued with the outward investment registration certificate, the abovementioned foreign currency account shall be used as an investment capital account and registered with the State Bank of Vietnam as prescribed by law. Any payments relating to transfer of foreign currency abroad before issuance of the outward investment certificate shall be made through this account.
What are the rules for transfer of foreign currency abroad before the issuance of the outward investment registration certificate in Vietnam? (Image from the Internet)
What are the applications for issuance of outward investment certificate in Vietnam?
Pursuant to Clause 1, Article 9 of Decree No. 124/2017/ND-CP stipulating as follows:
Applications for issuance of outward investment certificate in Vietnam
1. An application for issuance of outward investment registration certificate includes:
a) The application for issuance of outward investment registration certificate shall be made as prescribed in Clause 1, Article 55 of the Law on Investment for the project whose outward investment guidelines are decided by the National Assembly and Prime Minister, and Clause 2, Article 59 of the Law on Investment for the project that is exempt from outward investment guidelines;
b) Written confirmation given by the tax authority of investor’s fulfillment of tax liability by the time the investment project dossier is submitted according to Clause 5, Article 58 of the Law on Investment.
2. Other equivalent documents certifying the investor's legal status specified in the Law on Investment include one of the following papers: investment license or investment certificate or investment registration certificate if the investor is the foreign-invested enterprise in Vietnam or business registration certificate or establishment decision.
3. For the outward investment projects of the wholly state-owned enterprise, the outward investment decision specified in Point e, Clause 1, Article 55 of the Law on Investment includes the following documents:
a) The written approval granted by the representative agency of state capital owner to the investor for execution of the outward investment project, including the following information: investor, objectives, scope, forms and place of investment, total investment, capital raising plan, capital structure, project progress and investment efficiency criteria to be achieved;
b) A report on internal assessment of proposals for outward investment as the basis for the approval granted by the representative agency of state capital owner according to Point a of this Clause.
4. The documents specifying place where the investment project is executed include one of the following ones:
a) Petroleum agreement or investment agreement signed with the partner or agreement on receipt of transfer of rights to participate in petroleum agreements or transfer of part or entire company;
b) Investment license or equivalent documents of the host country;
c) Notification of contract award.
5. The investor shall be responsible to law for accuracy and truthfulness of the documents and registration information in accordance with regulations of the Law on Investment and this Decree.
Decree No. 124/2017/ND-CP was issued in 2017. Therefore, the provisions mentioned in the Law on Investment in the above content are implemented in accordance with the 2014 Law on Investment. However, the 2020 Law on Investment was promulgated and replaced the 2014 Law on Investment.
Thus, according to the provisions of the application for an offshore investment registration certificate, include:
- The application for issuance of outward investment registration certificate shall be made as prescribed in Articles 57 and 58 of the 2020 Law on Investment for the project whose outward investment guidelines are decided by the National Assembly and Prime Minister, and Clause 2, Article 61 of the 2020 Law on Investment for the project that is exempt from outward investment guidelines;
- Written confirmation given by the tax authority of investor’s fulfillment of tax liability by the time the investment project dossier is submitted according to Clause 5, Article 60 of the 2020 Law on Investment.
What language is used in outward investment project dossier?
Pursuant to Article 8 of Decree No. 124/2017/ND-CP stipulating the language used in outward investment project dossier as follows:
- The investment project dossier, documents and reports submitted to Vietnam’s regulatory authorities shall be made in Vietnamese.
- In case the investment project dossier is made in foreign languages, the investor shall submit a copy in the foreign language and a Vietnamese translation thereof.
- In case the investment project dossier is made in Vietnamese and foreign languages, a Vietnamese version shall be used to follow administrative procedures for investment.
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