Official document No. 33424/HAN-QLDN3 The Hanoi City Tax Department's Circular No. 33424/HAN-QLDN3 dated November 25, 2025, is an important guidance document on declaring and paying corporate income tax (CIT) on behalf of foreign contractors. During the transitional period between the old regulations and the Corporate Income Tax Law No. 67/2025/QH15, this document serves as a "guide" to help businesses in Vietnam correctly determine the basis for tax calculation. Understanding Circular No. 33424/HAN-QLDN3 helps accountants avoid risks of late payment or errors in contractor tax obligations, especially as cross-border transactions become increasingly complex.
The issuance of Official Document No. 33424/HAN-QLDN3 also aims to concretize the spirit of Circular 103/2014/TT-BTC In light of the new government decrees, for entities currently under contract with foreign partners, compliance with the guidelines in Official Letter No. 33424/HAN-QLDN3 is not only a legal obligation but also a testament to professionalism in financial management. This article from MAN – Master Accountant Network will provide an in-depth analysis of the professional aspects mentioned in Official Letter No. 33424/HAN-QLDN3 to support the accounting and auditing community.
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Legal context and scope of application of Official Letter No. 33424/HAN-QLDN3
Official document No. 33424/HAN-QLDN3 was issued to clarify the tax obligations of foreign contractors in transactions generating income in Vietnam. This document clearly defines the scope of application, the responsibility for withholding and remitting taxes on behalf of the Vietnamese party, and affirms the continuation of the regulations in Circular 103/2014/TT-BTC. Understanding the content of this document correctly helps businesses accurately identify taxable subjects, tax calculation methods, and minimize the risk of errors in tax declaration, settlement, and audit.
The subjects to which this applies are those guided in Official Letter No. 33424/HAN-QLDN3.
According to regulations, Official Letter No. 33424/HAN-QLDN3 provides guidance for companies in Vietnam that have an obligation to pay income to foreign contractors. Foreign contractors here include foreign organizations doing business with a permanent establishment in Vietnam or those without a permanent establishment in Vietnam but generating income in Vietnam.
This document emphasizes that the Vietnamese party is responsible for deducting and remitting taxes on behalf of the taxpayer at a fixed rate based on revenue. Correctly identifying the tax authority helps businesses fulfill their role as tax agents, thereby minimizing unnecessary administrative errors during subsequent audits.
The relationship between Official Letter No. 33424/HAN-QLDN3 and Circular 103/2014/TT-BTC
The content of Official Letter No. 33424/HAN-QLDN3 affirms the continuity from Article 13 of Circular No. 103/2014/TT-BTC regarding the direct tax calculation method. Businesses need to clearly determine the revenue for tax calculation. corporate income tax This refers to all revenue received from providing services and goods in Vietnam.
Official document No. 33424/HAN-QLDN3 requires accountants to carefully review contracts to determine gross or net price before filing tax returns according to current regulations. This ensures that the tax amount is accurately calculated, reflecting the true nature of the transaction and the tax responsibilities of each party involved in the contract.
Corporate income tax is calculated based on a rate of 1% tax on revenue as stated in Official Letter No. 33424/HAN-QLDN3.
Official document No. 33424/HAN-QLDN3 clarifies the basis for calculating corporate income tax at a rate of 1% of total tax and 3% of total tax on revenue for foreign contractors, while emphasizing the need for timely updates on new regulations under the Corporate Income Tax Law No. 67/2025/QH15. This document serves as guidance for businesses in applying the correct tax rate for each sector, avoiding the risk of errors when policies change, thereby supporting the accounting department in proactively planning taxes and controlling incurred costs.
Regulations on the % ratio for corporate income tax are outlined in Official Letter No. 33424/HAN-QLDN3.
A notable new point in Official Letter No. 33424/HAN-QLDN3 is the mention of the roadmap for applying the Corporate Income Tax Law No. 67/2025/QH15. If the detailed decrees of the new Law stipulate a different % ratio than before, businesses must prioritize applying the latest regulations.
Official document No. 33424/HAN-QLDN3 serves as a forecast and reminder for businesses to promptly update sub-legal documents to avoid incorrect application of rates that could cause financial losses. This proactive approach allows the accounting department to be flexible in tax planning and budget allocation for payments to foreign contractors.
Summary table of % corporate income tax rates for contractors by sector
Below is a table summarizing common corporate income tax rates based on the guidance in the Official Letter and related regulations:
| Contractor's business areas | Corporate income tax rate % calculated on revenue | Note |
| Commerce: distribution and supply of goods | 1% | This includes goods and services included in Vietnam. |
| Services, equipment rental, insurance | 5% | Commonly applied to consulting and technical services. |
| Interest on loans | 5% | According to regulations on interest income. |
| Copyright (Licence) | 10% | Income from the transfer of intellectual property rights |
| Construction and installation activities that include the supply of materials. | 2% | If no materials are included in the procurement, the 5% ratio will apply. |
The information in the table above is based on current regulations that businesses must be aware of when filing monthly/quarterly financial statements or declarations.
Instructions for filing and paying corporate income tax on behalf of others, according to Official Letter No. 33424/HAN-QLDN3
Official document No. 33424/HAN-QLDN3 provides specific guidance on the process of declaring and paying corporate income tax on behalf of foreign contractors, from preparing documents to determining the time when tax obligations arise. Adhering to the correct forms, declaration deadlines, and tax rates helps businesses fulfill their role of withholding and paying on behalf of others, while minimizing the risk of errors in accounting, reconciliation, and tax audits later on.
The tax return documents need to be prepared according to Official Letter No. 33424/HAN-QLDN3.
When submitting the declaration as instructed, businesses need to prepare a complete set of documents including: Contractor Tax Declaration Form (Form 01/NTNN), copies of the contractor's contract, and payment documents.
Official Letter No. 33424/HAN-QLDN3 notes that the date the tax obligation arises is the date of payment to the foreign contractor. Therefore, accountants need to closely monitor the actual cash flow to ensure that the deadlines for filing tax returns and paying taxes as stipulated in Official Letter No. 33424/HAN-QLDN3 are not violated.
The steps for filing the declaration are as per Official Letter No. 33424/HAN-QLDN3.
The first step, according to Official Letter No. 33424/HAN-QLDN3, is to determine the taxable revenue (whether the revenue includes tax or not). The next step is to apply the % rate corresponding to the business sector as stipulated in Article 13 of Circular 103/2014/TT-BTC.
Finally, businesses pay taxes to the state budget according to the correct program code and sub-item code. Official document No. 33424/HAN-QLDN3 emphasizes checking the logical consistency between the contract payment value and the deducted tax amount to avoid errors when comparing data.
Special notes on the Corporate Income Tax Law 2025 in Official Letter No. 33424/HAN-QLDN3
Official document No. 33424/HAN-QLDN3 specifically notes the impact of the Corporate Income Tax Law No. 67/2025/QH15 on the application of foreign contractor tax during the transitional period. The document emphasizes the principle of prioritizing the application of the law and requires businesses to closely monitor guiding decrees to promptly adjust tax calculation methods, ensuring compliance with new regulations and minimizing legal risks during tax audits and inspections.
The impact of Law No. 67/2025/QH15 on Official Letter No. 33424/HAN-QLDN3
The transition to the Corporate Income Tax Law No. 67/2025/QH15 brings about changes in tax calculation methods, as mentioned in Official Letter No. 33424/HAN-QLDN3. Businesses need to pay particular attention to the regulations on tax incentives or tax-exempt income under the new law.
Official Letter No. 33424/HAN-QLDN3 reminds that all guidelines in Circular 103/2014/TT-BTC remain in effect until an official replacement document is issued by the Government. This requires accountants to closely monitor the progress of issuing guiding decrees to ensure compliance with the spirit of Official Letter No. 33424/HAN-QLDN3.
The order of priority for applying legal documents is as per Official Letter No. 33424/HAN-QLDN3.
Official document No. 33424/HAN-QLDN3 clarifies the principle: higher-level documents or documents issued later will have priority legal validity. If the Decree guiding Law 67/2025/QH15 specifically stipulates the ratio of % to revenue, businesses must comply with that Decree.
This is a key point in Official Letter No. 33424/HAN-QLDN3 that helps businesses feel more confident when working with tax inspection agencies. Understanding the order of priority helps minimize the risk of legal disputes and optimize the legitimate rights of income-paying entities.
Risk analysis of non-compliance with Official Letter No. 33424/HAN-QLDN3
Official document No. 33424/HAN-QLDN3 plays a crucial role in preventing tax risks for foreign contractors. Failure to comply with or promptly update the contents of this document can expose businesses to the risk of administrative penalties, tax arrears, and tax assessments. Clearly analyzing these risks helps businesses proactively improve their deduction, declaration, and internal control processes, thereby limiting financial losses and protecting their reputation in tax compliance.
Risks related to administrative penalties mentioned in Official Letter No. 33424/HAN-QLDN3
Failure to update the content of Official Letter No. 33424/HAN-QLDN3 may lead to under-declaration of tax payable. According to Decree 125/2020/ND-CP, the act of incorrect declaration resulting in under-declaration of tax payable may be subject to a penalty of 20% (the amount of tax underdeclared).
Official document No. 33424/HAN-QLDN3 was issued to mitigate this risk by providing the clearest legal basis for the 2025 fiscal year. Complying with Official document No. 33424/HAN-QLDN3 is the way to protect businesses from unnecessary administrative penalties and late payment interest.
Risk of being overcharged when ignoring Official Letter No. 33424/HAN-QLDN3
In cases where businesses fail to implement withholding tax as guided in Official Letter No. 33424/HAN-QLDN3, the tax authorities have the right to determine the amount of tax payable based on revenue. This not only causes financial losses but also reduces the business's credibility in its compliance records.
Therefore, thoroughly studying Official Letter No. 33424/HAN-QLDN3 is an indispensable preparatory step for future tax settlements. A good internal control system needs to integrate the guidelines from Official Letter No. 33424/HAN-QLDN3 into the payment process for foreign partners.
Conclude
Official Letter No. 33424/HAN-QLDN3 dated November 25, 2025, is a highly practical document that helps resolve difficulties in determining the basis for calculating corporate income tax for contractors during the transitional period. Correctly understanding and applying Official Letter No. 33424/HAN-QLDN3 helps businesses optimize tax costs and ensure transparency. Through the analysis of the % revenue ratio, we can clearly see the tax authority's vision in synchronizing data with newly enacted laws.
Official Letter No. 33424/HAN-QLDN3 requires accountants to have a comprehensive and sensitive understanding of the legal changes in Law No. 67/2025/QH15. To support businesses in effectively handling contractor tax issues and strictly complying with Official Letter No. 33424/HAN-QLDN3, MAN – Master Accountant Network provides auditing services., tax accounting Professional. Our team of experts is committed to helping businesses control risks and build a standardized financial management system in accordance with Official Letter No. 33424/HAN-QLDN3.
Service contact information at MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
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Content production by: Mr. Le Hoang Tuyen – Founder & CEO MAN – Master Accountant Network, Vietnamese CPA Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.
Frequently Asked Questions about Official Letter No. 33424/HAN-QLDN3
The main content of Official Letter No. 33424/HAN-QLDN3 focuses on Corporate Income Tax (CIT). However, the principle for determining taxable revenue in Official Letter No. 33424/HAN-QLDN3 is often applied uniformly to Value Added Tax (VAT) if the contractor pays tax using the direct method.
Official document No. 33424/HAN-QLDN3 clearly states: When the Government issues a Decree detailing Law No. 67/2025/QH15, if there is a regulation on the ratio of % to new revenue, it must be implemented according to that Decree immediately upon its effective date.
Official document No. 33424/HAN-QLDN3 requires that the amount be based on the agreement in the economic contract. If the contract stipulates that the amount the contractor receives is the net value after tax, the enterprise must convert it (gross-up) to the pre-tax price.
Official Letter No. 33424/HAN-QLDN3 focuses on the basis for domestic tax declaration and payment. For Double Taxation Avoidance Agreements (DTAs), businesses should prepare separate documentation according to Circular 80/2021/TT-BTC in parallel with referencing Official Letter No. 33424/HAN-QLDN3.
Although issued by the Hanoi City Tax Department, the professional principles in Official Letter No. 33424/HAN-QLDN3 are highly valuable for businesses nationwide due to their up-to-date legal provisions. Does Official Letter No. 33424/HAN-QLDN3 apply to VAT for contractors?
According to Official Letter No. 33424/HAN-QLDN3, when will the % ratio under the new law be applied?
How to determine Gross/Net price according to Official Letter No. 33424/HAN-QLDN3?
Does Official Letter No. 33424/HAN-QLDN3 mention the double taxation avoidance agreement?
Which geographical areas does Official Document No. 33424/HAN-QLDN3 apply to?
