The General Department of Taxation issued an official letter 5465 / TCT
- KK on the handling of VAT and CIT regarding employee individual credit
card payment for corporate business purpose expenses on November 25, 2016.
When employee's credit card is used to pay expenses for enterprise's business
purpose, the following documents are required if it is accepted as deductible
VAT and deductible expenses on CIT.
1. Company's policy stating that payment methods and employees have authority
to pay
2. Documents certifying the using purpose is for work place (effective
invoice)
3. A document in the name of the company stating that employee’s payment
is approved and refunded subsequent
4. A record certifying payment from the employee's account, proof of remittance
to the payee, and evidence that a remittance has been made from the employee’s
account registered with the tax authority.
In addition, it is necessary to prepare a list of designated transferring
accounts of employees to submit to the tax authorities.