HC alert - June 2014 - English-1
Personal Income Tax
 
 
Official Letter No. 6375/BTC-TCT on PIT treatment for airfares for rotators
 
On 15/05/2014, the Ministry of Finance (MoF) published Official Letter (OL) No. 6375/BTC-TCT to provide guideline on the PIT treatment for airfares paid by the employer for the foreign rotators travelling to and from Vietnam upon their shift change.
In accordance with this OL, given the business nature as well as typical character of mining, oil and gas industry, the air tickets provided to rotators working on the rigs offshore of Vietnam shall not be treated as taxable income for PIT purpose.
The OL refers to Circular 84/2008/TT-BTC dated 30/09/2008, Circular 62/TT-BTC dated 27/03/2009, and Circular 111/2013/TT-BTC (Circular 111) dated 15/08/2013. Circular 111 has clearly indicated that airfares paid by the employer for the foreign rotators travelling to and from Vietnam upon their shift change are non-taxable. With the reference of the PIT regulations for the period before Circular 111 has effective, we are therefore on the interpretation that the non-taxable position for air tickets provided to rotators working on the rigs offshore of Vietnam upon their shift change is also applied from 1 January 2009.
We would be pleased to respond your concerns in regard of this Official Letter.