diff --git a/src/components/ReportActionItem/MoneyRequestView.tsx b/src/components/ReportActionItem/MoneyRequestView.tsx
index 3a8bffc0124c..9516387f0b94 100644
--- a/src/components/ReportActionItem/MoneyRequestView.tsx
+++ b/src/components/ReportActionItem/MoneyRequestView.tsx
@@ -452,7 +452,7 @@ function MoneyRequestView({
     const getPendingFieldAction = (fieldPath: TransactionPendingFieldsKey) => (pendingAction ? undefined : transaction?.pendingFields?.[fieldPath]);
 
     const isTaxEnabled = isTaxTrackingEnabled(isPolicyExpenseChat || isExpenseUnreported, policy, isDistanceRequest, isPerDiemRequest, isTimeRequest);
-    const shouldShowTaxDisabledAlert = !isTaxEnabled && !!transaction?.taxCode;
+    const shouldShowTaxDisabledAlert = !isTaxEnabled && !!transaction?.taxCode && !isTimeRequest && !isPerDiemRequest;
     const shouldShowTax = isTaxEnabled || !!transaction?.taxName || shouldShowTaxDisabledAlert;
 
     let amountDescription = `${translate('iou.amount')}`;
diff --git a/src/libs/Violations/ViolationsUtils.ts b/src/libs/Violations/ViolationsUtils.ts
index 3061b2fefd5c..f79885ff98e3 100644
--- a/src/libs/Violations/ViolationsUtils.ts
+++ b/src/libs/Violations/ViolationsUtils.ts
@@ -663,7 +663,7 @@ const ViolationsUtils = {
         }
 
         const hasTransactionTaxData = !!updatedTransaction.taxCode || !!updatedTransaction.taxValue || !!updatedTransaction.taxAmount;
-        const shouldAddTaxOutOfPolicy = isPolicyTrackTaxEnabled ? !isTaxInPolicy : hasTransactionTaxData;
+        const shouldAddTaxOutOfPolicy = !isTimeRequest && !isPerDiemRequest && (isPolicyTrackTaxEnabled ? !isTaxInPolicy : hasTransactionTaxData);
 
         if (!hasTaxOutOfPolicyViolation && shouldAddTaxOutOfPolicy) {
             newTransactionViolations.push({name: CONST.VIOLATIONS.TAX_OUT_OF_POLICY, type: CONST.VIOLATION_TYPES.VIOLATION, showInReview: true});
diff --git a/tests/ui/MoneyRequestViewTest.tsx b/tests/ui/MoneyRequestViewTest.tsx
index 3b525b2b27c6..74c06d8cb8e7 100644
--- a/tests/ui/MoneyRequestViewTest.tsx
+++ b/tests/ui/MoneyRequestViewTest.tsx
@@ -230,6 +230,34 @@ describe('MoneyRequestView edit fields', () => {
         });
     });
 
+    it('should not show tax fields for time expenses even when transaction has tax data', async () => {
+        const threadReport = {
+            ...LHNTestUtils.getFakeReport(),
+            parentReportID: expenseReportID,
+            parentReportActionID,
+        };
+
+        await setupTestData();
+
+        await act(async () => {
+            await Onyx.merge(`${ONYXKEYS.COLLECTION.TRANSACTION}${transactionID}`, {
+                taxCode: 'TAX_10',
+                taxAmount: 500,
+                taxValue: '10%',
+                comment: {type: CONST.TRANSACTION.TYPE.TIME},
+            });
+        });
+        await waitForBatchedUpdatesWithAct();
+
+        renderMoneyRequestView(threadReport, {tax: {trackingEnabled: true}});
+        await waitForBatchedUpdatesWithAct();
+
+        await waitFor(() => {
+            expect(screen.queryByTestId('menu-item-common.tax')).not.toBeOnTheScreen();
+            expect(screen.queryByTestId('menu-item-iou.taxAmount')).not.toBeOnTheScreen();
+        });
+    });
+
     it('should show amount and merchant as readonly when report is settled', async () => {
         const threadReport = {
             ...LHNTestUtils.getFakeReport(),
diff --git a/tests/unit/ViolationUtilsTest.ts b/tests/unit/ViolationUtilsTest.ts
index 23943d8ee975..e970977283b9 100644
--- a/tests/unit/ViolationUtilsTest.ts
+++ b/tests/unit/ViolationUtilsTest.ts
@@ -1166,6 +1166,33 @@ describe('getViolationsOnyxData', () => {
                 expect(result.value).not.toContainEqual(taxOutOfPolicyViolation);
             });
         });
+
+        describe('time and per diem requests', () => {
+            it('should not add taxOutOfPolicy violation for time requests even with tax data and tax tracking disabled', () => {
+                policy.tax = {trackingEnabled: false};
+                transaction.taxCode = 'SOME_TAX';
+                transaction.comment = {...transaction.comment, type: CONST.TRANSACTION.TYPE.TIME};
+                const result = ViolationsUtils.getViolationsOnyxData(transaction, transactionViolations, policy, policyTags, policyCategories, false, false);
+                expect(result.value).not.toContainEqual(taxOutOfPolicyViolation);
+            });
+
+            it('should not add taxOutOfPolicy violation for per diem requests even with tax data and tax tracking disabled', () => {
+                policy.tax = {trackingEnabled: false};
+                transaction.taxCode = 'SOME_TAX';
+                transaction.comment = {...transaction.comment, type: CONST.TRANSACTION.TYPE.CUSTOM_UNIT, customUnit: {name: CONST.CUSTOM_UNITS.NAME_PER_DIEM_INTERNATIONAL}};
+                const result = ViolationsUtils.getViolationsOnyxData(transaction, transactionViolations, policy, policyTags, policyCategories, false, false);
+                expect(result.value).not.toContainEqual(taxOutOfPolicyViolation);
+            });
+
+            it('should not add taxOutOfPolicy violation for time requests even with invalid taxCode and tax tracking enabled', () => {
+                policy.tax = {trackingEnabled: true};
+                transaction.taxCode = 'UNKNOWN_TAX';
+                transaction.comment = {...transaction.comment, type: CONST.TRANSACTION.TYPE.TIME};
+                policy.taxRates = {name: 'Taxes', defaultExternalID: 'TAX_10', defaultValue: '10%', foreignTaxDefault: 'TAX_10', taxes: {TAX_10: {name: '10%', value: '10%'}}};
+                const result = ViolationsUtils.getViolationsOnyxData(transaction, transactionViolations, policy, policyTags, policyCategories, false, false);
+                expect(result.value).not.toContainEqual(taxOutOfPolicyViolation);
+            });
+        });
     });
 
     describe('overTripLimit violation', () => {