Question:
Are there any tax obligations in Vietnam when transferring the capital contribution back to our company in South Korea? If so, what are the applicable tax rates and how are they determined?
Answer:
Since Company A must fulfill all its tax obligations to the competent authorities before completing the dissolution process, the remittance of capital contribution to the Client’s company in South Korea will not be subject to any additional taxes in Vietnam.
Note: The repatriated capital contribution to the Client’s company in South Korea may be subject to taxation under Korean law (e.g., corporate income tax on any capital gains arising from the investment). As this matter falls outside the jurisdiction of Vietnamese law, SB Law recommends that the Client consult with a lawyer or tax professional in South Korea to obtain more accurate and comprehensive advice on the issue.
