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Issues relating to offshore remittance of profits

Official letter No. 2094/TCT-DNL dated May 21st, 2020 of the General Department of Taxation regarding offshore remittance of profits

According to Clause 6 Article 11 of Circular No. 92/2015/TT-BTCstatus2 , profits of private enterprises, one member limited liability companies owned by individuals shall be exempt from tax on income from capital investment. This regulation is applicable from 2015, when Law No. 71/2014/QH13status2 takes effect.

According to the General Department of Taxation’s opinions, in case foreign investors are individuals directly investing in the Company, the profits the Company pays to the investors shall be subject to personal income tax according to Clause 6 Article 11 of Circular No. 92/2015/TT- BTC.

Procedures for offshore remittance of profits shall comply with Circular No. 06/2019/TT-NHNN.

Conditions for remitting profits abroad are provided at Article 1 and Article 4 of Circular No. 186/2010/TT-BTC.

If a foreign individual is the owner of a one member limited liability company in Vietnam, the profit the individual earns shall be exempt from deduction of 5% tax on income from capital investment according to Clause 6 Article 11 of Circular No. 92/2015/TT-BTCstatus2 .

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