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Whether Kilometers are Taxable.

Mileage allowance, or reimbursement for travel by company car, is one of the most common forms of billing employees for business trips. It is worth noting that mileage allowance is not treated as additional income for the employee, but as reimbursement for expenses incurred in connection with business travel.

It is also worth knowing that mileage is taxable, but how it is taxed depends on several factors. First of all, you should pay attention to whether the employee uses a company car or a private car. If the employee uses a company car, the mileage allowance is a reimbursement for expenses incurred by the employer and is not taxable. On the other hand, if a private car is used, mileage is treated as the employee's income and is taxable.

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It is also worth noting that the mileage amount is determined based on the rates in effect in the country and the number of kilometers traveled. The employer should keep adequate records of business travel and reimbursement to avoid misunderstandings with the tax office.

In summary, mileage is taxable, but how it is taxed depends on several factors, such as the type of car used during a business trip. It is always a good idea to consult an accounting firm or tax advisor to make sure that the mileage allowance is accounted for in accordance with applicable tax laws.

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