Vietnam Overhauls Profit Repatriation Rules for Foreign Investors Effective July 2026

For the first time, Vietnam has incorporated its profit repatriation regulation into its tax administration framework, with the issuance of Decree No. 252/2026/ND-CP (“Decree 252”). Previously, these rules were primarily governed under Circular No. 186/2010/TT-BTC (“Circular 186”). Vietnam has established clear regulations regarding profit repatriation for foreign investors, aiming to create a transparent and orderly process for foreign investors. Have a question about tax liability in Vietnam? Contact our Tax Team Circular 186 governs foreign investors’ transfer of profits abroad from Vietnam. Profits eligible for repatriation must be legally derived from direct investment activities in Vietnam, as outlined in the Investment Law, and all financial obligations to the State of Vietnam must be fulfilled before repatriation. Profits transferred abroad can be in cash or in kind and must comply with the following rules: Foreign investors can transfer profits earned or distributed from direct investment activities in Vietnam to their home country at the end of the fiscal year. This transfer is permitted once the enterprise in which the foreign investor has invested has met the following conditions: Foreign investors may transfer profits abroad after completing their direct investment activities in Vietnam if the enterprise in which they have invested has met the following conditions: Article 69 of the Enterprises Law 2020 (amended by Law No. 76/2025/QH15) mandates that a company’s profit shall only be distributed to its members if: In addition, Decree 252 provides that foreign investors may repatriate profits under the following conditions: Note: Decree 252 confirms that Global Minimum Tax (GMT) liabilities are not required to be settled as a pre-condition for profit repatriation, providing greater certainty for foreign investors planning dividend distributions or investment exits. The profit to be repatriated abroad is determined by the following formula: Remitted profit = Annual abroad remitted profits – (Reinvested profit + Profit allocated for expenditures) + Other profit items Where: Our accounting services ensure accurate financial planning, management, and compliance for your business in Asia. In accordance with Article 5 of Circular 186, foreign investors are required to either directly submit notifications or authorise the companies they have invested in to facilitate the submission of notifications regarding the remittance of profits abroad. These notifications must adhere to the specific forms outlined in the Circular and should be directed to the relevant tax offices overseeing the enterprises in which foreign investors have invested. It is essential that these notifications be lodged at least seven working days prior to the scheduled remittance of profits to ensure compliance with the regulatory framework. Vietnam has established a structured framework for the repatriation of profits for foreign investors, ensuring compliance with regulations and financial obligations. The process requires foreign investors to fulfil tax liabilities, submit necessary documentation, and adhere to specific timelines to facilitate the transfer of profits. By following these guidelines, investors can efficiently repatriate their earnings while contributing to a transparent investment environment in Vietnam. This article was originally published on 24 March 2025. It was last updated on 31 July 2026. Vietnam Briefing is one of five regional publications under the Asia Briefing brand. It is supported by Dezan Shira & Associates, a pan-Asia, multi-disciplinary professional services firm that assists foreign investors throughout Asia, including through offices in Hanoi, Ho Chi Minh City, and Da Nang in Vietnam. Dezan Shira & Associates also maintains offices or has alliance partners assisting foreign investors in China, Hong Kong SAR, Indonesia, Singapore, Malaysia, Mongolia, Dubai (UAE), Japan, South Korea, Nepal, The Philippines, Sri Lanka, Thailand, Italy, Germany, Bangladesh, Australia, United States, and United Kingdom and Ireland. Continue exploring Recent events Related reading Vietnam Briefing Magazine June 2026 Our Vietnam corporate team offers a fully integrated establishment solution. Get Expert Advice Tell us where you wish to grow, and we'll connect you with the right team across our global network.