Recently, there has been renewed interest in whether reimbursement for taxi rides is subject to PIT. What should employees and employers be aware of? Is this issue of taxi reimbursement settled? How does the tax authority approach this matter? A recent article in Rzeczpospolita features commentary by Piotr Sekulski PhD, shedding light on these questions.
The article, available here, provides valuable insights into what to watch for and how the tax authority interprets taxi reimbursements in the context of PIT.
tax advisor Piotr Sekulski, PhD
“Reimbursement for business-related taxi rides is not considered employee income,” stated the Minister of Finance unequivocally. “Although the response to the parliamentary inquiry is not binding for tax offices, I hope they adhere to it, if only out of respect for the principle of trust in state institutions.”
“Does the positive stance of the Minister of Finance mean that every taxi ride paid for by the employer is tax-free? Not necessarily. Much depends on the specific circumstances of the case. For instance, if an employee works in the office until 5 PM daily and the company pays for their commute home, it’s difficult to argue this is not a form of additional remuneration, which should be taxed. However, if the employee occasionally picks up a client from the airport or returns from a night shift, the taxi ride can be deemed essential for fulfilling job duties. In such cases, the reimbursement is not treated as income, and the employer is not required to withhold tax. (…)”
If you’re curious about how PIT applies to taxi reimbursements or how this might affect your tax settlement, visit us at www.outsourced.pl .
