Do investors have to repatriate the entire profit from investment to Vietnam?
Do investors have to repatriate the entire profit from investment to Vietnam? My company has invested in a project abroad. I want to know if the company's profits from this project must be transferred to Vietnam?
1. Do investors have to repatriate the entire profit from investment to Vietnam?
Pursuant to Article 68 of the Investment Law 2020 has the following provisions:
1. Within 06 months from the date on which the tax declaration or an equivalent document is available as prescribed by the host country’s law, the investor shall repatriate the entire profit and other incomes derived from outward investment unless the profit is retained as prescribed in Article 67 of this Law.
2. If the profit and other incomes are not repatriated within the time limit prescribed in Clause 1 of this Article, the investor shall send a written notification to the Ministry of Planning and Investment and the State Bank of Vietnam. The time limit for repatriation of profit may be extended by no more than 12 months from the expiry of the time limit specified in Clause 1 of this Article.
3. If the investor, within the time limit specified in Clause 1 of this Article, has failed to repatriate profit or send the notification or if the investor, within the extended time limit specified in Clause 2 of this Article, has failed to repatriate profit, such investor shall incur penalties in accordance with regulations of law.
Thus, except for some cases, profits are retained abroad. Your company must repatriate the entire profit and other incomes derived from outward investment to Vietnam.
2. Cases of investors in Vietnam are entitled to retain profit derived from outward investment
Pursuant to Clause 1, Article 67 of the Investment Law 2020, the investor is entitled to retain profit derived from outward investment for reinvestment in the following cases:
a) Continuing to contribute outward investment capital if capital has not yet been fully contributed as registered;
b) Increasing outward investment capital;
c) Executing a new investment project overseas.
Thus, for the above cases, your company in Vietnam is allowed to keep the profits from the investment project.
Best Regards!
