We book leases differently than fuel and repairs – tax interpretation – Income tax


Installments for a company car can be fully counted as tax costs. Even if it is used privately at times.

Only 75 percent. expenses for the operation of the leased car, which is also used for personal purposes, may be at the expense of PIT. It is about purchasing fuel, washing and repairing. Does the limitation also apply to leasing installments? Not. This is confirmed by the interpretation of the director of the National Tax Information.

An entrepreneur dealing with technical consultancy applied for it. He will lease a car worth 105 thousand. z. Mostly it will reach customers with it. He emphasizes that the car is indispensable in its operation. Sometimes, however, he also uses it privately. How will you account for your car expenses? Should the restrictions of the PIT Act be applied?

Let us recall that the tax cost may be only a part of the expenses for the operation of a passenger car, which is a company’s fixed asset, but the entrepreneur also uses it privately. Likewise, there are leased advantages. Each invoice for operation is settled in costs only in 75 percent.

What expenses does this limit apply to? For example, for fuel, service, tire replacement, car wash, repairs and spare parts, brake fluid and washer fluid replacement, tolls for highway tolls, diagnostic tests, rental of a garage, parking space or parking lot, as well as post-accident repairs (such a catalog of expenses can be found in statements of the Minister of Finance).

Full costs can be settled by those who only use the car for business purposes. The way the car is used, however, must be confirmed by a detailed record of journeys.

Does the limitation apply to these leasing installments? Not. If the value of the car does not exceed 150 thousand. z, you can fully settle installments in tax costs. Even though the car is sometimes used privately. The entrepreneur can count 100 percent of the tax deductible costs. of all net costs shown on invoices for car leasing, “we read in the interpretation of the director of the National Tax Information.

Interpretation number: 0113-KDIPT2-1.4011.331.2021.2.DJD


Source: https://www.rp.pl by www.rp.pl.

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