Money paid for using your own car no longer taxable. A reimbursement of the expenses of using private car for company purposes should not be treated as the employee’s income of employment. It may be possible that amounts reimbursed to employees for the cost of using their private cars locally for company purposes will not constitute their income and, as such, will not be subject to personal income tax. Employees often use their private cars for the purposes of their employment, in exchange for which the employers refund the underlying expenses to them. In the case of local travel, such reimbursements are generally made in two ways: as a fixed monthly amount or based on the actual mileage and a fixed per-kilometre rate. In both cases the employer and the employee should enter into a private contract that would govern use of the latter’s private car for the former’s purposes and reimbursement of the related operating expenses.
For the full text of the article by tax advisor Monika Bilska, see Rzeczpospolita on-line, the Dobra Firma Weekly or here.