If foreigners lease their houses to receive interest, can they transfer interest to oversea and how? Do they need to pay fee?

Question:

If foreigners lease their houses to receive interest, can they transfer interest to oversea and how? Do they need to pay fee?

Answers:

According to Article 162 of the Law on Housing 2014, foreigner can lease the property to be used for the purposes permitted by laws, provided that a prior written notice has to be sent to the competent district authority and the seller shall be self- responsible for taxes imposed on such lease. As such, foreigner can lease the property to receive interest. Article 7 (3) of the Ordinance on foreign exchange No 28/2005/PL-UBTVQH11 dated 13 December 2015 (amended on 18 March 2013) and Article 4 of the Decree 70/2014/ND-CP dated 17 July 2014 of the Government on detailing and guiding some provisions of Ordinance on foreign exchange allow legal income of the foreigners to be transferred oversea. Therefore, interest gained from leasing houses can be freely transferred oversea. The income is subject to income tax provided for in Article 1 the Law No.26/2012/QH13 on amendment and supplement of some provisions of the Law on income tax 2007.

Foreigners can transfer money through the services provided by the banks in Viet Nam or physically bring it out of the country by cash (not more than 5,000 USD (or other equivalent foreign currency) or over 15 million Vietnam Dong in cash in accordance with Circular no.15/2011/TT-NHNN).

Foreigner using service of the bank have to pay the fee subject to the policy of each bank, in accordance with Article 17 of the Decree No.101/2012/NĐ-CP dated November 22, 2012 of the Government on non-cash payment.

Source: AsiaReal