On the 15th of August 2018, Hanoi Tax Department issued official letter no. 57077/CT-TTHT as guidance on profit repatriation:
If the company has fully discharged its tax obligations to Vietnam Government, submitted audited financial reports, and annual tax return to relevant tax department; it can carry out profit repatriation procedures as follows:
- Profit repatriation notice: the company can submit Form “Profit repatriation notice” attached in Circular no. 186/2010/TT-BTC to relevant Tax department. In the notice, the company shall specifies the figure to be transferred of each financial year (in case the profits have been accumulated for years)
- Profit repatriation: the company can decide how much of profit to be repatriated; however, the calculation must be in compliance with Circular no. 186/2010/TT-BTC.
- Timing of Profit repatriation: upon submission of profit repatriation notice to tax department as per Article 5 Circular no. 186/2010/TT-BTC; the company can transfer such profit after 7 working days.