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Dividend payments from Vietnam: Quick guide for foreign investors (2024).

Dividend payments from vietnam: quick guide for foreign investors (2024)

This quick guide provides a clear overview of the process for foreign investors seeking to understand the requirements for remitting dividends abroad from Vietnam. As a foreign corporate shareholder or owner of a Vietnamese company, you will find valuable information on ensuring a smooth and compliant repatriation of your investment returns.

Upon a valid dividend declaration by a Vietnamese company to a foreign corporate shareholder/owner, the full amount of the dividend (100%) can be repatriated abroad.

Determining eligibility

To repatriate a dividend to a foreign investor, a company needs first to confirm that it has positive retained profits at the time and that it is not in a loss position for that 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 pay all taxes and other government financial obligations.

Notification and clearance

Once a dividend has been declared, the local tax authority needs to be notified. Following this, they have seven days to object to the payment. The company can continue with the payment process if an objection has not been received after seven days.

Dividend payment process

Bank accounts

Dividend payments to foreign investors need to be paid out through a Capital Account:

  • Direct Investment Capital Account (DICA) held by the company, or
  • Indirect Investment Capital Account (IICA) held by an individual

Foreign currency conversion

Discussions should be held with the company’s 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

Preparing the documentation

The banking documents are usually completed during the seven-day period while waiting for the tax authorities’ no-objection period so that when that period has expired, the dividends can be disbursed promptly.

Conclusion

By following these steps and maintaining open communication with your company and bank, you can ensure a smooth and compliant remittance of your Vietnamese investment dividends. This guide serves as a general overview, and it is always recommended to consult with professional legal and tax advisors for personalised guidance specific to your situation.

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Updated on April 2, 2024
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