Car in the company – Tax aspects

A. Rented car – tax aspects

It is necessary for rented cars to have a logbook. Based on the logbook data the monthly deduction allowance for corporate income tax purposes will be calculated (number of business mileage rate multiplied per kilometre). The tax-deductible costs for rented cars can be claimed for tax purposes in each month only to calculated limit.

The cost of car rental used for the needs of the business, are not limited to the so-called kilometres limit. They should be included in the cost of revenue for the general principles following the Art. 22 of the Act 1 of the PIT Act and Art. 15 of the Act 1 of CIT act accordingly. This results from the general interpretation of the Minister of Finance dated 08 November, 2013 No. DD2/033/55/MWJ/13/RD-111005. The theme of this settlement ends years of dispute between tax authorities and taxpayers in terms of classification of the tax costs of car rental.

Input tax deduction allowance on car invoices for rent is limited to 60%, but not more than 6,000.00 PLN. The non-deductible input tax can be declared as a business expense, and may be tax-deductible up to the limit described above. The input tax deduction on fuel is not possible, the gross amount can be claimed as a business expense claim to the calculated limit.

B. Owned or used car because of a lease contract

There is no statutory obligation to record a logbook for one’s own or subject to a lease contract used car. Business expenses are all cost types without limits as quoted in point A. The input tax deduction entitlement on car purchase or lease bills is limited to 60%, but not more than 6,000.00 PLN. The non-deductible input tax by leasing invoices can be declared as a business expense and are tax-deductible. The non-deductible input tax on the purchase of owned cars increases the initial value.

The input tax deduction on fuel is not possible, the gross amount can be claimed as a business expenses claim.
Special case: own car with an acquisition value over 20,000.00 EUR
Proportionally the depreciation and insurance costs are not tax deductible.