Vietnam: Conditions for foreign citizens/organizations to make asset contribution to a charity fund

According to Decree No. 93/2019/ND-CP of Vietnam’s Government, foreign citizens and organizations are allowed to contribute their assets with Vietnamese citizens and organizations to establish a fund in Vietnam. However, in order to make asset contribution to a fund, a foreign citizen or organization must:

- commit to pay taxes and take responsibility for the lawfulness of his/her/its contributed assets;

- commit to strictly comply with the law of Vietnam and the fund’s operation objectives; and

- contribute assets to establish the fund as prescribed in Article 14 hereof.

Notably, the value of assets contributed by foreign citizens and organizations shall not exceed 50% of total value of assets contributed to establish the fund as prescribed herein.

Decree No. 93/2019/ND-CP also specifies that if a Vietnamese citizen or organization that receives an inheritance under a testament or receives donation establishes a fund, he/she/it shall comply with Clause 1 Article 11 hereof and prepare an application for establishment license as prescribed in Article 15 hereof and send it to the competent authority as prescribed in Article 18 hereof. If the value of the inheritance or donation contributed to the fund meets the minimum value of the fund’s assets as prescribed in Article 14 hereof, no additional founding members are required. If the value of the inheritance or donation contributed to the fund does not meet the prescribed minimum value of the fund’s assets, the fund must have additional founding members that shall make asset contributions to the fund as regulated.

If a fund is established under a testament or by donation, a certified copy of such testament or written agreement on donation is required. If a fund is established under the authorization of an organization or individual, a notarized authorization contract is required.

More details can be found in Decree No. 93/2019/ND-CP of Vietnam’s Government, which takes effect from January 15, 2020.

Thu Ba

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