New SKW/ASA Rumor

[zawillif]

Tax free, baby..

Haha holy crap.. For the second time this PAGE--read back in the thread. Vietnam has a 25% flat tax for foreigners working in country.

(Edit: Well I started a new page, but you get my meaning.)

 

[JumpersAway]

Haha holy crap.. For the second time this PAGE--read back in the thread. Vietnam has a 25% flat tax for foreigners working in country.

(Edit: Well I started a new page, but you get my meaning.)

This will be paid by the airline, and not by the pilot. Or so goeth the rumor.............

The announcement will be made very soon, within the next month to begin the interview/application process.

 

[ASA_Aviator]

Haha holy crap.. For the second time this PAGE--read back in the thread. Vietnam has a 25% flat tax for foreigners working in country.

(Edit: Well I started a new page, but you get my meaning.)

Again. Repeating.... The company is covering all Vietnamese taxes.

 

[LazyLightnin']

Haha holy crap.. For the second time this PAGE--read back in the thread. Vietnam has a 25% flat tax for foreigners working in country.

(Edit: Well I started a new page, but you get my meaning.)

Tax free, baby..

 

[Erlanger]

This will be paid by the airline, and not by the pilot. Or so goeth the rumor.............

The announcement will be made very soon, within the next month to begin the interview/application process.

This is all so funny. There will be no announcement cause there ain't going to be any Vietnam flying. Skywest/ASA deal in Vietnam was to provide technical help and nothing else.

 

[GeekMaster]

This is all so funny. There will be no announcement cause there ain't going to be any Vietnam flying. Skywest/ASA deal in Vietnam was to provide technical help and nothing else.

Don't know if you're an ASA person or not, but there are some actual facts to support all these "rumors".

Lately the rumor began to spread that LS, the director of safety was going to head up the operation. Then, shazaam, BS from the chief pilot's office is announced as the new director of safety. (thus freeing up LS to get started)

BB, the pilot from Vietnam who started it all, was in the Chief Pilots' office this week. Several people asked him about it. Of course he's bound by confidentiality, but did say this week that an announce is forthcoming in 2-4 weeks.

So nobody really truly knows whether pilots will be offered employment opportunities in that announcement, but there are two older "oral spoutings" that say there will be. Christmas day BH himself visited the pilots' lounge and told all who would listen that their "would be flying opportunities" for ASA pilots in Vietnam. Then in multiple recurrent ground schools, SH has said there would be flying opportunities. In his words, "you won't get rich, but it'll be a great opportunity for some".

 

[JumpersAway]

This is all so funny. There will be no announcement cause there ain't going to be any Vietnam flying. Skywest/ASA deal in Vietnam was to provide technical help and nothing else.

..........................You're wrong.

Anybody got the name of that island off the coast of southern Vietnam?

 

[buscap]

..........................You're wrong.

Anybody got the name of that island off the coast of southern Vietnam?

Fayetville?

 

[LazyLightnin']

This is all so funny. There will be no announcement cause there ain't going to be any Vietnam flying. Skywest/ASA deal in Vietnam was to provide technical help and nothing else.

Hi. I'm earth. Have we met?

 

[zawillif]

Again. Repeating.... The company is covering all Vietnamese taxes.

Well, the Vietnamese tax is a fact while the company covering all our taxes is rumor. Unless you heard it first hand from the mouth of Scott or Brad I'm not getting my hopes up.

 

[BillJBrake]

Just got word on *good* authority that the company will NOT be "grossing" people up, to cover the taxes. Crew members will be responsible for their tax obligations to Vietnam and the US. However, current plan (again this is from a good source, but not in writing yet) is to pay a large amount of the salary in "per diem" so as to negate the tax burden and so you'll end up being responsible for the Vietnamese tax rates (flat or the 35-40% depending on residency work-arounds) and they'll pay out the per diems to effectively keep your base under $91.5k and you will be thanking the FEIE all the way to the bank!

I'm glad to see Scott and Brad are being so thorough in dotting all their i's and making sure this works out to be the deal that it really should be!! (I wouldn't be surprised if take-home pay is in the "make G550 drivers jealous" territory!).

 

[GeekMaster]

Just got word on *good* authority that the company will NOT be "grossing" people up, to cover the taxes. Crew members will be responsible for their tax obligations to Vietnam and the US. However, current plan (again this is from a good source, but not in writing yet) is to pay a large amount of the salary in "per diem" so as to negate the tax burden and so you'll end up being responsible for the Vietnamese tax rates (flat or the 35-40% depending on residency work-arounds) and they'll pay out the per diems to effectively keep your base under $91.5k and you will be thanking the FEIE all the way to the bank!

I'm glad to see Scott and Brad are being so thorough in dotting all their i's and making sure this works out to be the deal that it really should be!! (I wouldn't be surprised if take-home pay is in the "make G550 drivers jealous" territory!).

So if I read what you're saying correctly, then the following would be correct:

Assume the salary was 9000/month USD plus housing.
12 X 9000 = 108,000 USD annually.
Around 91,000 would be paid as per diem. (circumventing Vietnamese tax)
Since that amount is below 91.5, as long as you are outside the U.S. at least 330 days out of the year, it is NOT subject to U.S. tax.
The remaining 17k or so IS subject to Vietnamese tax. Assuming 35% would give a tax load of around 6k give or take.

So the total salary in that scenario would be 108K with a total tax liability of 6K?

Is that correct?

 

[BillJBrake]

Geekmaster,

Close, but more like the other way around.

Using your numbers...

108,000 USD annually,

around 91,000 would be paid as salary, the remaining $17k'ish would be paid at per-diem. So the the 91k would be subject to Vietnamese tax, not the 17k. So assuming 35% your tax load would be ~$32k. So in that scenario $108k with total tax liability of $32k.

I'll have a bit more detailed info on this soon, my sources are working on some stuff today/tomorrow.

 

[GeekMaster]

Geekmaster,

Close, but more like the other way around.

Using your numbers...

108,000 USD annually,

around 91,000 would be paid as salary, the remaining $17k'ish would be paid at per-diem. So the the 91k would be subject to Vietnamese tax, not the 17k. So assuming 35% your tax load would be ~$32k. So in that scenario $108k with total tax liability of $32k.

I'll have a bit more detailed info on this soon, my sources are working on some stuff today/tomorrow.

That's a big tax load.....as big or bigger than the tax load on 108k if it was earned while living and working in the U.S. If they want to attract sufficient numbers of applicants, they will need to at the very least create a situation where the pilot doesn't actually experience financial harm by going.

 

[BillJBrake]

That's a big tax load.....as big or bigger than the tax load on 108k if it was earned while living and working in the U.S. If they want to attract sufficient numbers of applicants, they will need to at the very least create a situation where the pilot doesn't actually experience financial harm by going.

Considering the housing package and return-home benefits that they're grouping in with this, it is still a net win for anyone considering doing it. ~$75k take home is more than (or just about equal) to what any CA at Acey is currently making, and you wouldn't have to take any money out of that to pay for your meals our housing, with the allowances they're putting in the Vietnam package.