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Whether the Kilometer is Statutory.

Mileage is a popular way of accounting for employees who perform work off-site and use their own company car or private car for business purposes. The question often arises as to whether mileage is statutory and legal.

There is no single law in Polish law governing mileage. Instead, the provisions on accounting for business travel expenses and setting car mileage rates are scattered in various legal acts, such as the Labor Code, the Personal Income Tax Act and the Accounting Act.

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In practice, for a company to apply mileage, it must meet certain conditions. First of all, the employee must have an employment contract or other civil law agreement with the employer, which specifies the scope of work duties and the conditions for accounting for travel expenses. In addition, the employer must establish a rate for travel by company car, which should be agreed with the employee and be in accordance with applicable regulations.

It is also worth noting that the use of mileage allowance involves the obligation to keep proper documentation, including mileage records, business trip reports and invoices for fuel and other costs related to the use of the car. Lack of proper documentation can result in problems during an audit by tax authorities or the Social Security Administration.

In conclusion, although mileage allowance is not regulated by one particular piece of legislation, it is a practice commonly used in Polish companies. It is important, however, that a company using this method of accounting for business travel costs act in accordance with applicable regulations and keep appropriate documentation to avoid unpleasant legal consequences.

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