Instruction on the procedure of opening, use and closure of accounts in national and foreign currencies, approved by the NBU Board Resolution of 12.11.03, № 492(hereinafter - Instruction № 492, provides for the purposes for which corporate bank card can be used.
Legal entity or individual-entrepreneur (by card holder) cannot use a corporate card for receiving salary and other social payments, settlements under foreign trade agreements (contracts) and foreign investments in Ukraine and investments of residents outside Ukraine (see sub-para.1 of para .8.3 of the Instruction № 492).
It is detailed in the Instruction № 492 how to use a corporate card only for foreign currencies card accounts. Thus, funds from current account in foreign currency can be used by legal entity and individual-entrepreneur via electronic means of payment only for:
- receipt of cash outside Ukraine to pay business trip expenses;
- payments settlement in a non-cash basis outside Ukraine that are related to business trip expenses and representative character costs, as well as payment of maintenance costs related to presence of air, sea means and motor vehicles outside Ukraine according to the conditions the Merchant Shipping Code of Ukraine, the Air Code of Ukraine, the Convention on International Civil Aviation, the International Convention on Road Traffic.
According to the author, the hryvnia corporate card also can be used for business trip expenses. It is not banned by para .8.3 of the Instruction № 492.
In accordance with para.5 of Sec.I of the Instruction on business trips within Ukraine and abroad as revised in the Order of the Ministry of Finance of Ukraine of 17.03.11, № 362 (hereinafter - the Instruction on business trips), it is permitted to pay wage advance to the business traveller in cash or to transfer in a non-cash basis on appropriate account to be used by payment cards.
Funds, which are transferred on the corporate card account by company, are not considered to be issued to the employee under report at the time of their transfer, because such amounts are still kept in the company account (through ATM or bank cash desk / commercial enterprise) or makes noncash settlement (through payment terminal).
Peculiarities of reporting on the funds received as a business trip advance on corporate card are detailed in sub-para. 170.9.3 of the Tax Code of Ukraine of 02.12.2010, № 2755-VІ (hereinafter - TCU).
Thus, if the cash was received via ATM or bank cash desk or via commercial enterprise desk, the Report on the use of funds issued for a business trip or under report, in the form approved by the Ministry of Revenues and Duties of Ukraine of 24.12.13 p. № 845 (hereinafter - Advance report) should be submitted before the end of the 3rd business day following the day of completion of the business trip (see. para. “a” of sub-para.170.9.3 of the TCU).
If the business traveller used payment cards for cashless payments during the business trip, the Advance report deadline should not exceed 10 banking days. If there are valid reasons, the employer (self-employed) is allowed to continue it to 20 banking days (to clarify the matter in case of differences between the respective reporting documents) (see. para. “a” of sub-para.170.9.3 of the TCU).
Remember: unused cash during the business trip withdrawn from the corporate card should be returned to the cash desk or to the company account together with the Advance report or before its submission. The employee is obliged to return the unused portion of the cash advance (obtained from a corporate bank card) in those monetary units, in which the advance was given (para.17 of sub-para.III of the Instruction on business trips).
The documents confirming expenses during the business trip should be submitted to the Advance report. In addition, the receipt of payment terminal, ATM receipts, slips and other documents (copies of cash withdrawal receipt in established forms, etc.) should be added – para.212 of Regulation on cash transactions in national currency in Ukraine, approved by the NBU Board Resolution of 15.12. 04, № 637.
