Foreign investors in Vietnamese companies need more than a decision to distribute profit. A dividend has to meet company-law conditions, be taxed correctly for the type of shareholder, and, where it is sent abroad, satisfy tax and banking requirements before the funds can leave Vietnam.
Several parts of this framework changed recently. The Law on Personal Income Tax 2025 took effect on 1 July 2026, the Law on Corporate Income Tax 2025 applies from the 2025 tax year, and the tax administration rules were updated from 1 July 2026. Investors should therefore confirm the current position rather than rely on earlier guidance.
This guide focuses on cash dividends. It explains the conditions for declaring dividends, how dividends are taxed, what must be in place before profits are remitted abroad and the common issues that delay payment.
What Conditions Apply Before a Vietnamese Company Declares Dividends?
Dividends are paid from the company’s profit after tax, and the Law on Enterprises 2020, as amended, sets conditions that should be checked before the distribution is approved.
- Distributable profit: The company needs to account for:
- Profit after tax available for distribution
- Any accumulated losses
- Funds that must be set aside under applicable law and the company’s charter
- Other requirements affecting the amount available for distribution
A profitable year does not automatically mean that the full amount can be distributed. Accumulated losses and other required adjustments need to be considered first.
- Tax and financial obligations: The company needs to meet its tax and other financial obligations before paying the dividend.
This is particularly important where the dividend will later be remitted overseas. Outstanding tax, interest or administrative penalties can affect whether the remittance can proceed.
- Ability to pay debts: The company must remain able to meet its debts and other obligations as they fall due after the distribution.
This means the dividend decision should be considered alongside the company's cash position, not only its accounting profit.
- Payment deadline: For a joint stock company, dividends must be paid in full within six months from the end of the annual general meeting of shareholders.
The company should therefore consider the timing of the dividend approval, audit and tax finalisation before setting the payment timetable.
- Corporate approval: The dividend must be approved by the competent body in accordance with the Law on Enterprises and the company's charter.
Maintaining approval and supporting records is important because the bank and other parties may need documents to support the payment and subsequent remittance.
A formal dividend policy helps shareholders, directors and finance teams agree on timing and procedure. Distribution plans should also reflect the six-month payment deadline for joint stock companies and the timing of the audit and the corporate income tax finalisation, because these affect when profits can be remitted abroad.
How Are Dividends Taxed in Vietnam?
The tax treatment in Vietnam depends on the type of shareholder receiving the dividend. The table below summarises the main rules.
| Shareholder | Tax treatment in Vietnam | What to consider |
| Foreign corporate shareholder | No withholding tax is applied in Vietnam on dividends paid to a corporate shareholder, where the dividend is a lawful distribution of after-tax profit. | Review the tax treatment in the shareholder’s home country and any applicable tax treaty. |
| Resident individual | Personal income tax at 5% on capital investment income under Article 12 of the Law on Personal Income Tax 2025, effective 1 July 2026. | Confirm tax residency and how the tax will be withheld and declared. |
| Non-resident individual | Personal income tax at 5% on capital investment income under Article 22 of the Law on Personal Income Tax 2025. | Confirm the source of the income and the home-country treatment. |
Corporate and individual shareholders are treated differently, so the shareholder structure should be reviewed before dividends are planned. Where shares are held through an intermediate holding company, the tax position should be assessed at each level.
What Must Be in Place Before Dividends Can Be Remitted Abroad?
Declaring a dividend and remitting it abroad are separate steps.
For foreign direct investment, annual profit remittance is governed by Circular No. 186/2010/TT-BTC, and the conditions below apply to that route. Remittance of dividends from indirect investment follows the applicable foreign-exchange and securities rules.
For foreign direct investment, profits can be remitted abroad once the Vietnamese company has met the applicable financial, tax and notification requirements. The foreign investor receives the distributed profits through the relevant banking arrangements.
| Requirement | What the company needs to confirm |
| Audited financial statements | The audited financial statements for the relevant year have been completed and submitted. |
| Corporate income tax finalisation | The annual corporate income tax finalisation return has been submitted. |
| Financial obligations to the State | Taxes, late-payment interest and administrative penalties have been paid, and there are no outstanding tax debts at the time of remittance. |
| Accumulated losses | The company has no accumulated losses. Profits cannot be remitted while accumulated losses remain, even if the current year is profitable. |
| Prior notice | The tax authority directly managing the invested company has been notified at least seven working days before the remittance, using the prescribed form (Article 5 of Circular No. 186/2010/TT-BTC). |
These checks affect when the money can actually leave Vietnam.
For example, if the audit has not been completed or the annual corporate income tax finalisation has not been submitted, the company may need to delay the remittance even if the dividend has already been approved.
The tax administration framework was updated from 1 July 2026 under the Law on Tax Administration 2025 and Decree No. 252/2026/ND-CP. The current notification form and procedure should therefore be confirmed with the tax authority before the remittance date is fixed.
For indirect investment, dividend remittance is subject to the applicable foreign-exchange and securities rules.
Which Bank Account Is Used to Remit Dividends in Vietnam?
Dividends in Vietnam are paid through a bank account that matches the type of foreign investment. Using the wrong account, or missing supporting documents, is a common cause of banking delays.
- Direct investment capital account (DICA): A DICA is used for direct investment and transactions related to that investment, including profit remittances.
The account is opened with a licensed bank in Vietnam under the applicable foreign-exchange rules.
- Indirect investment capital account (IICA): An IICA is used for foreign indirect investment, including securities investment and the receipt of dividends in Vietnamese dong.
Circular No. 03/2025/TT-NHNN, effective from 16 June 2025, replaced Circular No. 05/2014/TT-NHNN and amended Circular No. 06/2019/TT-NHNN.
Which account applies?
The answer depends on whether the investment is direct or indirect.
Circular No. 03/2025/TT-NHNN also changed the related ownership criterion from 51% or more to more than 50%. However, ownership percentage should not be considered in isolation. The nature of the investment also matters.
The company should confirm the applicable account and documentary requirements with its bank before the dividend is paid.
How Do You Remit Dividends to Foreign Investors in Vietnam?
The sequence below shows how the conditions above fit together in practice for Vietnamese companies to remit dividends to foreign investors.
- Confirm distributable profit: Check profit after tax, accumulated losses and required funds before proposing a distribution. The purpose is to establish how much can legally be distributed before the dividend is approved.
- Obtain approval: Approve the dividend in line with the charter and record the decision. The approval should clearly support the amount and payment being proposed.
- Settle tax obligations: Complete the corporate income tax finalisation and settle any outstanding tax, late-payment interest or administrative penalties that need to be paid before the remittance.
- Finalise the audit: For annual profit remittance by a foreign direct investor, make sure the audited financial statements have been completed and submitted. This means the audit timetable needs to be considered when planning the dividend payment.
- Notify the tax authority: For direct investment, notify the tax authority that directly manages the company at least 7 working days before the remittance, using the prescribed form. The company should confirm the current filing procedure before submitting the notice.
- Instruct the bank: Provide the bank with the documents it requires for the transfer and currency conversion. The company should also use the account appropriate to the type of investment.
- Keep records: Keep the documents supporting the payment and remittance, including:
- Corporate approval
- Financial statements
- Tax filings
- Tax authority notification
- Bank documentation
- Other supporting records
These records provide a clear trail if the transaction is reviewed later.
What Challenges Commonly Delay Dividend Payments in Vietnam?
Most delays come from compliance gaps that could have been identified earlier.
- Accumulated losses: A profitable year does not allow remittance if accumulated losses remain on the balance sheet.
- Outstanding tax matters: Unpaid tax, interest or penalties can prevent the remittance from proceeding.
- Late or incomplete audit: Remittance depends on the completion of audited financial statements and the finalisation return.
- Account and document issues: The wrong account, or missing supporting documents, can delay the bank’s processing.
- Timing: Dividends declared close to a reporting deadline may leave too little time for the notification period.
How Should Companies Prepare for Dividend Remittance?
A planned approach reduces the risk of delay and unexpected tax cost.
- Plan the timetable: Work back from the audit and tax finalisation dates when scheduling the distribution.
- Review the tax position early: Confirm the Vietnamese tax treatment and the home-country position for each shareholder.
- Coordinate with the bank: Confirm account type and documentary requirements before the dividend is declared.
- Monitor changes: The new tax laws and administrative rules took effect during 2026, so procedures should be checked each time a dividend is planned.
How Ascentium Supports Dividend Planning and Repatriation
Dividend repatriation brings together corporate, tax, accounting and banking requirements. Ascentium Vietnam can help foreign investors review distributable profit, tax position and documentation early, and align corporate, accounting, tax and workforce considerations with the proposed distribution plan.
Our teams can also support the transition from setup to ongoing operations, helping coordinate connected workstreams as the business develops. With local expertise in Vietnam and access to Ascentium’s wider regional network, we help clients move forward with clearer ownership, better visibility and practical support as their operations grow.
