Hi everyone, today I would like to share some important information about non-cash payments applicable from July 1, 2025 and how to handle tax deductions when traveling on business that requires a transfer.

Previously, payments of VND 20 million or more had to be transferred from the company account to be deducted. However, from July 1, 2025, according to the provisions of the Law on Value Added Tax 2024, all transactions for purchasing goods and services must have non-cash payment documents to be deducted input VAT. This regulation applies to all transactions, regardless of the value, except for some special cases prescribed by the Government.

So if an employee goes on a long business trip and needs to pay for a room or meal of over VND 20 million, what should he do? Here is a little tip to legalize deductible expenses as follows:

A/Method 1:

According to the provisions of the consolidated document No. 11 dated May 15, 2017, section 2.9 on documents required for business trips

In case the enterprise sends employees on business trips (including domestic and foreign business trips), if there are expenses of VND 20 million or more, the cost of buying air tickets and these expenses are paid by personal bank cards, then they are eligible as non-cash payment and counted as deductible expenses if they meet the following conditions:

- There are appropriate invoices and documents issued by the supplier of goods and services.

- The enterprise has a decision or document to send employees on business trips.

- The financial regulations or internal regulations of the enterprise allow employees to pay for business trips, buy airline tickets with a personal bank card and the enterprise will then reimburse the employee.

The company needs to draft a payment regulation that allows employees to pay suppliers on behalf of the company. Thus, when going on a business trip, the employee will use the employee's bank account to make the payment. Then, the company will transfer the payment to the employee on the business trip based on the legal documents provided by the employee.

The accountant keeps the payment authorization of the company and the employee along with the legal payment documents and the decision to send the employee on a business trip, then all expenses for the employee's business trip will be deducted from tax normally.

B/ Method 2:

- The company will open a debit/credit bank card of the company and authorize the employee to use the card.

The card is linked to the company's payment account.
Employees use it to:
Pay for business expenses (hotels, airfares, taxis, etc.)
Spend on purchasing supplies, raw materials, and office expenses.
Spending limits are usually set by the company.
At the end of the period, the company compares spending documents with statements for settlement.

→ Advantages:

Clear and easy-to-control public spending management.
Do not require employees to advance money from their own pockets.

→ Disadvantages:

Risks if employees use it for the wrong purpose.
The bank may require strict documentation because it is under the name of a legal entity.

Very simple, right? If you have any questions, please comment for answers.

Phan Thanh Nam-CEO FAMA