5 Key Considerations for Transferring Money into Corporate Accounts to Mitigate Risk

Notes:  When transferring money to the company account, businesses and individuals need to pay special attention during financial transactions if the procedures are not carried out and fully documented as required.

1. Identify and clearly state the purpose of the money transfer.

Before transferring money to a corporate account, the sender must clearly define the transaction's purpose. This is a crucial factor in avoiding legal, tax, and accounting risks in the future.

Transfer purposes may include: payment for goods and services, business capital contribution, advance payments, debt repayment, or financial support loans. Each purpose requires different accounting and tax treatments; therefore, failing to record the true nature of the transaction can lead to errors during tax finalization or trigger requests for explanation from authorities.

Recommendation: Clearly state the transfer description (e.g., "Payment for Contract No...", "Capital Contribution - Phase 1", "Repayment of Debt for Month..."). Detailed descriptions facilitate easier reconciliation, accounting, and reporting when required.

Accurately identifying the purpose of money transfers ensures transaction transparency, precise accounting, and minimizes tax risks.

2. Thoroughly Verify Beneficiary Information.

One of the most common risks in fund transfers is incorrect beneficiary information, which can lead to misdirected transfers or difficulty in recovering funds. Before confirming a transaction, please double-check the following:

Beneficiary company name (matching the Business Registration Certificate).

Bank account number.

Bank name and branch.

Business Tax Identification Number (TIN) (for record verification if necessary).

For high-value transactions, it is advisable to cross-reference information from multiple sources such as contracts, invoices, or official confirmation emails from the partner. If there is a discrepancy between the account name and the business name, clarification should be sought before proceeding to avoid fraud risks or disputes.

3. Understand the regulations related to transferring money into the company account.

Transferring funds into a corporate account is not merely a financial transaction; it is governed by legal regulations on taxation, accounting, and anti-money laundering (AML).

Businesses must clearly understand:

Which types of funds are permitted for direct transfer into a corporate account.

Whether transfers from individuals into a corporate account require accompanying contracts, agreements, or supporting documents.

Limits and conditions for cash versus wire transfer transactions.

For instance, funds without a legitimate legal basis (e.g., contracts, capital contribution minutes, loan agreements) may be classified as taxable income, triggering corresponding tax obligations.

Understanding the legal regulations when transferring money to a company account is the best way to avoid mistakes and legal risks.

4. Accounting

Following a transfer, the business must ensure complete and timely accounting entries into the correct accounts. Accounting must comply with Vietnamese Accounting Standards (VAS) and guidance circulars from the Ministry of Finance to ensure the transparency of financial statements.

Each receipt into a corporate account must be clearly categorized as:

• Revenue.
• Capital contribution.
• Loan.
• Advance or reimbursement.
• Third-party collection or payment.

Incorrectly recording the nature of a transaction can lead to distorted financial statements, affecting tax finalization and the business's reputation. Furthermore, all supporting documents—such as credit advices, bank statements, contracts, and reconciliation minutes—must be archived for inspection and audit purposes.

5. Report transactions exceeding VND 500 million to the State Bank of Vietnam.

According to Circular No. 27/2025/TT-NHNN on Anti-Money Laundering, domestic electronic transfers of VND 500 million or more (or equivalent in foreign currency) are subject to reporting. This reporting obligation is fulfilled by the bank or payment service provider as per State Bank of Vietnam (SBV) regulations.

While the bank handles the reporting to the SBV, the involved business should:

• Provide full and honest information upon the bank’s request.
• Clearly explain the source of funds and the transaction purpose if requested.
• Ensure the transaction is transparent and legally grounded.

These regulations represent a step forward in monitoring high-value transactions for effective AML control. Proactively preparing documentation for large transactions will facilitate smoother processing during reviews.

Transactions from 500 million VNDTransparency and complete information are needed to meet regulatory reporting requirements.

6. Common mistakes when transferring money to a company account.

Even simple financial transactions can carry risks if not performed correctly. Common errors include:

• Incorrect Transfer Descriptions: Descriptions that do not reflect the transaction's nature or are left blank, making accounting and tax explanations difficult
• Transfers to Personal Accounts: Accidentally transferring to the personal account of a director or employee instead of the company's account, risking the loss of deductible expenses and potential disputes
• Lack of Valid Documentation: Transactions without contracts or invoices lack a clear legal basis and may be viewed unfavorably by authorities
• Non-compliant Cash Transfers: Using cash for large payments when the law requires non-cash methods can lead to unrecognized expenses and administrative penalties

Open a business account quickly and securely at SeABank.

Southeast Asia Commercial Joint Stock Bank (SeABank) is a leading commercial bank in Vietnam, operating with a customer-centric philosophy and continuous technological innovation. We offer a wide range of financial products for businesses of all sizes, from startups to expanding enterprises.

Benefits of Opening a Corporate Account at SeABank:

• Simple and Fast Procedures: Streamlined account opening to support new businesses.
• High Security: Transactions comply with the strictest banking safety standards.
• Flexible Digital Banking: Easily manage balances, transaction history, and transfers anytime, anywhere.
• Non-Cash Payment Support: Helping businesses comply with tax and accounting regulations.
• Professional Advisory Team: Dedicated support throughout your service experience.

Online Account Opening Steps:

• Step 1: Access the "Products" menu > "Online Corporate Account Opening" on the SeABank website.
• Step 2: Provide required information and upload necessary documents.
• Step 3: Use a digital signature to sign the eKYC application.
• Step 4: SeABank will verify the application and notify the result via SMS or email.

Opening a business account at SeABank helps optimize financial operations and improve cash flow management efficiency.

Note: The information above is for reference only; businesses should consult with their accounting, tax, or consulting departments for specific guidance tailored to their individual circumstances.

Frequently Asked Questions about Transferring Money to a Company Account

1. Are individuals who transfer money into a company's account subject to tax?

Not all money transferred into a company account is subject to tax.. Only amounts of money that are identified as taxable income according to regulations will give rise to tax liability.If it is capital contribution, loan, or debt repayment and there is valid documentation, no tax will be incurred; only when the amount is determined to be income of the business will it be declared and taxed according to regulations.

2. Is a contract required when transferring money to a company account?

Depending on the purpose of the money transfer, for payments, capital contributions, or loans, having a written contract or agreement will make the transaction clear, facilitating accounting and explanation when necessary.

3. What should I keep in mind when contributing capital via bank transfer?

Investors must transfer funds via non-cash methods to the company's correct account, clearly stating the purpose of the contribution and adhering to the deadlines stipulated in the Enterprise Law to ensure legality and protect the rights of all parties.

For those who wish to learn more about SeABank's products, please contact the nearest branch, call the Hotline 1900 555 587, or visit the website www.seabank.com.vn for more details.