On August 24th ,2020 Hanoi Tax Department issued Official Letter No. 78002/CT-TTHT. Whereby:
In case that the Company has incurred online advertising expenses on Google, Facebook, if these expenses meet the actual conditions related to production and business activities of the Company, with the prescribed FCT declaration and payment documents and non-cash payment as regulated complying with legal regulations of VAT, the above expenses shall be included in deductible expenses when determining the taxable cooperate income.
In case that the Company authorizes an individual who is an employee of the Company to use a personal credit card for the aforementioned services’ payment, then the Company shall return the payment to the individual via bank transfer from the Company‘s bank account to the individual’s account (a credit card opened by the Company for the individual at the Bank), if this form of payment is specified in the Financial regulations or Decision Authorization of the Company for a individual, it shall be considered as non-cash payment record as stipulated in Article 1 Circular No. 173/2016/TT-BTC.
