New Polish tax regulation for company cars
Posted: 2015-04-22
Starting with 2015, new rules will apply for the use of company cars by employees. The main reason for the change is the simplification of the calculation method for the taxable benefit-in-kind that arises from the personal use of the car by the employee. Company cars in Poland are offered by many types of companies and business owners as well as employees are concerned with this change. Our Polish law firm can offer you special advice and help with the income tax rules for company cars in Poland.
Using a company car in Poland
The private use of company cars by employees in Poland is taxed and starting with 1 January 2015, new income tax rules have entered into force for this purpose. The changes are implemented as a result of an Amendment brought to the Act concerning the facilitation of business activities. The manner in which employees are taxed for the benefit of using a company car is the main reason for the legislative and fiscal changes included in the Act.
Until the recent changes, no specific calculation method was in force. Companies used a series of measures of their choice, based on rough interpretations of the tax law, to calculate how employees would have to reimburse the employer for using the company car for private purposes.
The new regulations for the income tax rules for company cars
The new regulations for using company cars stipulate that the benefit-in-kind for using such a car will have a fixed value per month: 250 PLN for cars that have an engine capacity of up to 1600 cm3 and 400 PLN for cars that have an engine capacity of over 1600 cm3. If the employee only uses the company car for personal purposes only for a few days or weeks and not an entire month, the amount will be calculated using a different method.
The experts at our law firm in Poland are able to help you calculate the value of the benefit for any type of car. Additionally, we can help Polish companies draft any agreements or amendments to existing contacts to include the new changes for the right to use company cars.