The use by employees of business cars for private purposes

The use by employees of business cars for private purposes

In accordance with art. Article 12 (1) 2a of the PIT Act (as in force on 1 January 2015 of the Year) the cash value of the free of charge of the employee for the use of the work car for private purposes shall be fixed at:

  1. 250 per month-for cars with engine capacity up to 1600 cm3;
  2. 400 per month-for cars with engine capacity over 1600 cm3.

Pursuant to art. Article 12 (1) 2b and 2c of the PIT Act, in the case of the use of a business car for private purposes for a part of the month, the value of the benefit shall be determined for each day of use of the car for private purposes of 1/30 amounts referred to in paragraph 2a.

If, on the other hand, the benefit granted to the employee for the use of the business car for private purposes is partly chargeable, the employee's income is the difference between the value referred to in paragraph 1. 2a or para. 2b and the payment borne by the employee.

Will this lump sum also cover the purchase of fuel?

In this respect, there are doubts as to whether the above lump sum will also include expenditure on the purchase of fuel. Our law firm requested an interpretation, standing in the position that the amount cited above. The lump sum is already included in the fuel.

The tax authority, when issuing the interpretation, stated that the roared covers such operating costs as, for example, the Replacement of tires, costs of repair or insurance, but does not include fuel that must be considered as a separate benefit free of charge.

The wniosdakowcy position was first divided by the WSA and, ultimately, the applicant admitted to the NSA, stating that a lump-sum income on the use of the company car for private purposes includes both the value And any other charges and expenses associated with the use of the vehicle.

The use by employees of business cars for private purposes

In its oral justification, the General Court stressed that the company's position is justified in that the value of the income derived from the use of the business vehicle for private purposes also includes providing the worker with a fuel which will not constitute a separate unpaid Provide.

The Court has agreed that the provisions of the PIT Act talk about the use of a car, not the law of its use, and the use of the car is not possible without fuel.

This reasoning, according to the court, is compatible with both the purpose of the aforementioned Provisions, which, according to the explanatory memorandum to the Act on Facilitating business, had to help to dispel any doubts of taxpayers in determining the amount of revenue from the use of a business car for the purposes and a literal interpretation of art. Article 12 (1) 2a of the PIT Act.

Distribution of operating charges

According to the NSA, it should also be considered unfounded by the tax authorities to share the operating charges related to the use of the car on those which should be added to the revenue (excluding the lump sum)-like fuel And to those which have no separate provision, e.g. Insurance, replacement of tires, etc.

This is the first NSA ruling on the subject. Fortunately, the NSA has adopted a favourable interpretation of the provisions of article Article 12 (1) 2a of the PIT Act, stating that the lump sum for private driving will also include fuel costs. Therefore, expenditure incurred by the employer for fuel to a business car which the employee also uses for personal purposes will not constitute a separate unpaid benefit.

We think the position presented by the NSA signal. Act II FSK 1185/16 is correct, so if you would like to verify the current practice used to determine the income for employees from business cars for private purposes, please contact us.

Use by employees of business cars for private purposes.

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