On December 27, 2022, the Tax Department of Bac Ninh province issued Official Letter No. 4248/CTBNI-TTHT, according to which:
In case the company and the parent company in a foreign country have signed a contract to support human resources, under which the parent company sends experts to Vietnam to work (the expert is still a member of the parent company abroad and the if the company does not sign a labor contract with a subsidiary in Vietnam), for expenses the company must pay during the time the experts come to work in Vietnam such as airfare, accommodation fee, travel fee, etc. the company must withhold, declare and pay foreign contractor tax according to the provisions of Circular 103/2014/TT-BTC dated 06/08/2014.
In case the company incurs a payment for airfare to a service provider that is a foreign company outside the territory of Vietnam, the income generated in Vietnam of this foreign company is subject to subject to foreign contractor tax in Vietnam.
In case the company pays the airfare and the service provider is a company in Vietnam, the income received by this Vietnamese company is not subject to foreign contractor tax.
