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Posted by VNC Consulting & Office Supplies - 8 months ago
0 0

Most of Peoples are using credit cards
for Shopping, online purchase, at Food Zone etc. There are too many types of
credit cards are offered by different banks. Nowadays, the trend of using
credit cards for payment in enterprises is increasing significantly in Vietnam.

Enterprise can register a credit card under name and ownership
of the Company. The Board of Management, Purchasing Officers, and employees on
business trip… may hold this card to make payment for the Company.

But, in case of paying expenses using personal
credit card, how is the treatment for tax deduction?

On 25 Nov 2016, General Department of Taxation has issued
Official Letter No. 5465/TCT-KK regarding VAT deduction for expenses paid by
personal credit card, accordingly:

In case the Company delegates employees to use personal credit
card for purchasing goods, services from suppliers, then the Company makes
payment by transferring via the Company’s bank accounts registered with
Taxation Department to bank accounts of employees. If such case is specifically
stated in financial management regulations or there is a Decision about the
delegation of Company to employees; at the same time the Company has supporting
documents verifying goods, services used in production and business activities,

- Invoice for purchasing goods and services under name and tax
code of the Company;

- Documents relating to the delegation of Company to the

- Remittance documents from credit account of employees to

- Remittance documents from Bank account of Company to employees’;

then such payment method is considered to meet the requirements
of non-cash payment vouchers which is the basis to declare, deduct VAT input.
This cost is considered to be deductible expenses when determining Corporate
Income Tax.

The Company has the responsibility to create and supervise a
list of personal credit card of these employees to provide to Tax Authority
when required. 

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