VIETNAM Law and Practice Contributed by: Chuyen Hong Huu Le, Tan Nhat Truong Phan and Tu Anh Tran, Tilleke & Gibbins
2.3 Lease Registration 2.3.1 Notation of Owner’s/Lessor’s Interests on Aircraft Register The Aircraft Register of Vietnam records information on: • registration or deregistration of aircraft (regarding the nationality of the aircraft); • rights toward the aircraft (such as ownership and possession rights); • security enforcement over the aircraft (ie, mort - gage); and • other information relating to Vietnamese national - ity (or temporary Vietnamese nationality) of the aircraft. An aircraft is registered with specific information on the foreign owner and lessor and the registration cer - tificate of Vietnamese nationality aircraft, upon being granted, will record the names and addresses of the aircraft owner, lessor and aircraft operator/lessee/ domestic airline. It is possible to note the interests of other parties (such as the mortgagee) on the Aircraft Register. 2.3.2 Registration If the Owner Is Different From the Operator A reference to “registration of aircraft” under Vietnam - ese law is understood as ”registering the nationality of the aircraft”. The aircraft can be registered domesti - cally in the name of the owner if the owner is not also the operator. 2.3.3 Aircraft/Engine-Specific Registers Approval of the aircraft leasing (not the approval of the lease agreement) from CAAV is generally required before the lessee operates a leased aircraft in Vietnam. In contrast, engine leases are generally not subject to a separate approval process by CAAV in practice. 2.3.4 Registration of Leases With the Domestic Aircraft Registry Within five working days from the receipt of a com - plete registration dossier (normally submitted by the domestic airline/operator), CAAV will either approve or reject the aircraft lease. If rejected, a clear written explanation will be provided. The laws do not outline
any consequences for failing to secure CAAV approval for the aircraft lease. Vietnamese law does not require the execution and delivery of an aircraft or engine lease in relation to an aircraft registered in Vietnam. 2.3.5 Requirements for a Lease to Be Valid and Registrable There are no specific forms required for the lease other than it must be in writing. Strictly speaking, a foreign language lease must be translated into Vietnamese and it must be certified as a true translation by a Viet - namese notary public. In practice, CAAV may exercise some flexibility in accepting an original signed copy of the lease in English. 2.3.6 Taxes/Duties Payable for Registering a Lease The fee for CAAV’s appraisal and approval of an air - craft lease is VND5 million (approximately USD200). 2.3.7 Registration of Aircraft in Alternative Countries There are no common alternative countries for regis - tering Vietnam-based aircraft. Vietnam-based aircraft are registered in Vietnam. 2.3.8 Requirements for Documents Concerning Registration Apart from the lease agreement and a properly filled request form, no specific formality requirements are prescribed by law for other documents concerning lease approval. However, documents that are issued in a foreign country or in a foreign language should generally be translated, certified, notarised or legal - ised before submission. 2.4 Lessor’s Liabilities 2.4.1 Tax Requirements for a Foreign Lessor The lessor will be considered to have income derived in Vietnam through leasing the aircraft to the domestic lessee. The lessor will therefore be liable to pay foreign contractor tax in relation to any payment made by the lessee, which includes VAT and corporate income tax (CIT). As the aircraft lease is exempt from VAT, the les - sor only pays CIT, which will be withheld by the lessee.
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