Whether Kilometers Are Income.

Mileage allowance, i.e. reimbursement for the cost of driving a company car, is often treated by employees as additional income. However, it is worth noting that mileage allowance is not actually income, but only reimbursement for expenses incurred in connection with the performance of work.

Companies that settle for mileage pay employees for fuel, tire wear, car servicing and other business travel expenses. Thus, it is a form of compensation for costs incurred, not additional earnings.

For employees who frequently travel on business, mileage can be a significant financial convenience, especially if the company applies attractive reimbursement rates. However, it is important to remember that mileage should be accounted for in accordance with applicable tax laws and company regulations.

Therefore, before using mileage as an additional source of income, it is advisable to consult a tax specialist or use the help of an accounting firm. In this way we will avoid possible misunderstandings with the tax authorities and be sure that our accounts are in accordance with the law.

In summary, mileage is not income, but reimbursement for expenses incurred in connection with business travel. For companies and employees, it is an important form of compensation, which should be accounted for in accordance with applicable regulations and company rules. Therefore, it is worthwhile to take care of correct billing and use professional help in case of doubts.