This quick guide covers the process for foreign investors seeking understand requirements for remitting funds abroad from Vietnam.
Where a Vietnamese Company declares a Dividend to a Foreign Corporate Shareholder/Owner, the Dividends can be distributed abroad where the procedures below are followed.
In order to repatriate a dividend to a foreign investor, a company needs first to confirm it has positive retained profits at the time and that they are not in a loss position for the year.
The company needs to ensure that its financial statements have been audited and submitted to the authorities for that year. In addition, the company is required to have fulfilled all taxes and other financial obligations to the Government.
Once a dividend has been declared, the local tax authority needs to be notified, following which they have 7 days to object to the payment. Where an objection has not been received after 7 days, the company can continue with the payment process.
Dividend payments to foreign investors are to be remitted through a “Capital” Bank Account:
- Direct Investment Capital Account (“DICA”) held by the company, or
- Indirect Investment Capital Account (“IICA”) held by an individual.
Discussions should be held with the company’s Vietnamese bank regarding:
- Documents required for the conversion from VND to foreign currency, and
- Further documentation/forms (if any) to be completed for the remittance per State Bank procedures applicable at the time.