The rent for a car is not included in the mileage allowance
One of the possibilities of using vehicles for the purposes of running a business is renting. This solution is advantageous in particular when the entrepreneur's car has been repaired or it is necessary to send an employee on a business trip. However, in this case, the settlement of operating costs should be settled only as part of the vehicle mileage register within the meaning of the provisions of the PIT Act. Does this also include the rent for the car rental?
Rent for a car and a mileage
Pursuant to the provisions of the PIT Act, a taxpayer who uses a car that is not entered into the register of fixed assets (e.g. rented or private) cannot include expenses related to it directly in costs. It is necessary to settle them as part of the vehicle mileage register (kept for the purposes of income tax). The exceptions are:
vehicles used in business activities under a leasing agreement or
when the concluded lease / tenancy agreement meets the conditions set out in the Personal Income Tax Act entitling it to be considered an operating lease agreement.
An entrepreneur or employee using a rented passenger car for the purpose of conducting business activity is obliged to keep records of the routes traveled. On their basis, a limit of expenses that can be settled in costs is calculated. The limit is determined as the amount resulting from the multiplication of the number of kilometers of the actual car mileage and the rate for 1 km of mileage. The aforementioned rates for passenger cars have remained the same since 2007 and are equal to:
engine displacement up to 900 cm3 - PLN 0.5214,
engine displacement above 900 cm3 - PLN 0.8358,
The next step is to compare the total amount of expenses incurred for the current operation of the vehicle with the previously calculated limit. The lower value is then recognized as tax deductible costs.
It is worth noting that the limit resulting from the vehicle mileage record is calculated increasing during the year. Therefore, when the amount of expenses in a given month exceeds the limit - the surplus is transferred to the next settlement period. The same is true for unused vehicle mileage.
Kilometer and rent for a car
Taxpayers had many doubts as to whether the rent for renting a car for business purposes. If the costs related to the operation of the vehicle are accounted for within the mileage allowance, the question arose: should the rental costs also fall within the limit?
The answer was given by the Supreme Administrative Court in its judgment of March 16, 2012 (file reference number II FSK 2030/10). According to his interpretation, the rental of a passenger car does not fall within the definition of "operating costs". Therefore, the fees incurred to pay the rent should be included beyond the limit of the vehicle mileage record - directly to tax deductible costs. The discussed position was also confirmed by the Minister of Finance in the general interpretation issued on November 8, 2013 (DD2 / 033/55 / MWJ / 13 / RD-111005).
Therefore, taxpayers may include the rent for renting a passenger car directly in tax deductible costs, even if the vehicle does not cover any distance in a given period. It is one of the many recent interpretations of tax regulations that are favorable to entrepreneurs.