diff --git a/src/components/ReportActionItem/MoneyRequestPreview/MoneyRequestPreviewContent.tsx b/src/components/ReportActionItem/MoneyRequestPreview/MoneyRequestPreviewContent.tsx
index 44e3b7488ba3..72e0a43ed5e5 100644
--- a/src/components/ReportActionItem/MoneyRequestPreview/MoneyRequestPreviewContent.tsx
+++ b/src/components/ReportActionItem/MoneyRequestPreview/MoneyRequestPreviewContent.tsx
@@ -147,7 +147,8 @@ function MoneyRequestPreviewContent({
     // When there are no settled transactions in duplicates, show the "Keep this one" button
     const shouldShowKeepButton = !!(allDuplicates.length && duplicates.length && allDuplicates.length === duplicates.length);
 
-    const shouldShowCategoryOrTag = !!tag || !!category;
+    const shouldShowTag = !!tag && isPolicyExpenseChat;
+    const shouldShowCategoryOrTag = shouldShowTag || !!category;
     const shouldShowRBR = hasNoticeTypeViolations || hasWarningTypeViolations || hasViolations || hasFieldErrors || (!isFullySettled && !isFullyApproved && isOnHold);
     const showCashOrCard = isCardTransaction ? translate('iou.card') : translate('iou.cash');
     // We don't use isOnHold because it's true for duplicated transaction too and we only want to show hold message if the transaction is truly on hold
@@ -439,7 +440,16 @@ function MoneyRequestPreviewContent({
                                     {shouldShowCategoryOrTag && (
                                         <View style={[styles.flexRow, styles.pt1, styles.alignItemsCenter]}>
                                             {!!category && (
-                                                <View style={[styles.flexRow, styles.alignItemsCenter, styles.gap1, tag && styles.mw50, tag && styles.pr1, styles.flexShrink1]}>
+                                                <View
+                                                    style={[
+                                                        styles.flexRow,
+                                                        styles.alignItemsCenter,
+                                                        styles.gap1,
+                                                        shouldShowTag && styles.mw50,
+                                                        shouldShowTag && styles.pr1,
+                                                        styles.flexShrink1,
+                                                    ]}
+                                                >
                                                     <Icon
                                                         src={Expensicons.Folder}
                                                         height={variables.iconSizeExtraSmall}
@@ -454,7 +464,7 @@ function MoneyRequestPreviewContent({
                                                     </Text>
                                                 </View>
                                             )}
-                                            {!!tag && (
+                                            {shouldShowTag && (
                                                 <View style={[styles.flex1, styles.flexRow, styles.alignItemsCenter, styles.gap1, category && styles.pl1]}>
                                                     <Icon
                                                         src={Expensicons.Tag}