Official letter No. 59940/CTHN-TTHT dated December 6th, 2022 of the Department of Taxation of Ha Noi City regarding tax policies applicable to foreign contractors

In case a company buys air tickets online from a foreign airline for its director to make business trip, if the foreign airline sells the tickets through its agent, booking office in Vietnam, the agent, booking office shall be responsible for withholding, paying withholding tax on its behalf (clause 2 Article 4 of Circular No. 103/2014/TT-BTC ).

However if the foreign airline directly sells electronic tickets to the Company (not through its agent, booking office in Vietnam) and the foreign airline does not make tax registration in Vietnam according to Articles 76, 77, 78 and 79 of Circular No. 80/2021/TT-BTC or fails to meet the conditions to directly make tax declaration according to Article 8 of Circular No. 103/2014/TT-BTC, the Company has to withhold, pay withholding tax on its behalf.

Rate for tax calculation with regard to revenue from sale of the air tickets of the foreign airline is 2% of revenue liable to enterprise income tax (clause 2 Article 13 of Circular No. 103/2014/TT-BTC ).