Whether Kilometers Include Income.

Kilometric mileage is one of the forms of accounting for employees for business trips, consisting of payment of an amount for kilometers traveled by private car. The question often arises as to whether the amount paid for mileage is included in the employee's income.

According to tax regulations, the amount paid for mileage is not treated as income for the employee if it is paid in accordance with the applicable rates set by the Ministry of Finance. In this case, there is no need for Social Security contributions or personal income taxation.

However, it is worth remembering that if the rate limits set by the Ministry of Finance are exceeded, the difference between the amount paid and the applicable rate may be treated as additional income for the employee and subject to taxation.

Therefore, it is important that the employer and the employee have clearly defined rules for the payment of mileage, and that the amounts are paid in accordance with applicable regulations. This will avoid misunderstandings and unpleasant tax consequences.

In short, mileage is included in the employee's income only if the rate limits set by the Ministry of Finance are exceeded. Otherwise, it is a form of accounting for business travel that is not taxable.