Expenses, which are from 20 million VND and paid by individual credit card, shall be calculated into deductible expenses.
On May 28th 2018, Hanoi Department of Tax released the Official dispatch No 34676/CT-TTHT. Accordingly,in case Enterprise authorizes for individuals who are its employees to pay for goods and services, which are used for manufacturing and operation of the Enterprise,with the value from twenty (20) million dong (including VAT)for the seller by their credit cards, then the Enterprise shall pay for those individuals by bank transfer from Enterprise’s account to personal account, if these payments are specified in the Enterprise’s financial regulation ormanagement rules and having full of dossiers to prove that those goods and services are used for business operation such as: invoices bearing the name and tax code of the Enterprise; documents related to the authorization of the Company to individuals to pay for the seller and pay back to the Company; Bank slip for transfer money from personal account to the seller and from Enterprise’s account to personal account, the Enterprise is able to declare and deduct Value Added Tax and subject to deductible expenses when determining Corporate Income Tax.
The company is responsible for making and following up the list of credit card of its employees who were authorized to make payment for goods and services under above method and provide it to the competent authority.