Official letter 59940/CTHN-TTHT about tax policy for foreign contractors:
Based on the above provisions, in case Rayarc Vietnam Co., Ltd. buys round-trip tickets for the company's director to go abroad on a business trip (Korea) on the website of Korean Air (Foreign business organization) business) then:
Korean Air airline generates income in Vietnam from the provision of passenger transportation services on the basis of a contract of carriage (tickets) subject to the payment of foreign contractor tax obligations as prescribed in Clause 1 of this Article. 1 Article 1 Circular No. 103/2014/TT-BTC.
In case, when buying air tickets through Korean Air's website, air tickets are issued through the airline's agents or ticket offices in Vietnam, Rayarc Vietnam Co., Ltd. is not required to deduct and pay taxes on behalf of the airline. Korean Air Airlines. Agents and ticket offices of Korean Air are responsible for declaring and paying tax according to the provisions of Clause 2, Article 4 of Circular No. 103/2014/TT-BTC.
In case Korean Air Airlines sells air tickets on its website, issue e-tickets directly to Rayarc Vietnam Co., Ltd. via the website, not through the airline's agents or ticket offices in Vietnam. , fail to register for tax or pay tax as prescribed in Articles 76, Article 77, Article 78, Article 79 of Circular 80/2021/TT_BTC, or fail to satisfy one of the conditions mentioned in Article 8 of Circular 103 /2014/TT_BTC, Rayarc Vietnam Co., Ltd. is responsible for withholding and paying tax on behalf of foreign contractors. The corporate income tax rate for passenger transportation services is 2% on the revenue from CIT. Tax registration dossiers for withholding organizations submitted on behalf of foreign contractors are specified in Clause 6, Article 7 of Circular No. 105/2020/TT-BTC.
