On August 25th, 2023, Hanoi Tax Department issued Official Letter No. 62652/CTHN-TTHT, according to which:
In case the Company authorizes an individual, who is an employee of the Company, to pay for the purchase of fixed assets used for the enterprise’s business operation with a value of twenty (20) million VND or more (price includes VAT) to the seller in the form of payment by individual’s credit cards to the seller’s account, then the Company pay to individual via bank transfer from the Company’s account registered with the tax authority to the individual’s account. The company declare and deduct input VAT and include it in deductible expenses when calculating corporate income tax if:
- This payment method is specified in the financial management or the corporate governance regulations of the Company;
- The expense with sufficient records, documents proving assets are used for the enterprise’s business operation;
- There are invoices for the buy of goods and services with the Company’s name and TIN;
- There are records related to the Company’s authorization for the individual to pay with the seller and pay back to the Company;
- Credit statement from the individual’s credit card to the seller, the money transfer document from the Company’s account to the individual’s account
