Polish Deal – tax aspects of using company cars

by Anna Pilarska

1 September 2021

The new amount to be added to the income of an employee using a company car for private purposes is:

• 250 zloty – for users of electric or hybrid cars and cars with engine power of up to 60 kW (80.41 HP);
• 400 zloty – for employees using other types of cars.

So far, the amount has depended on the engine displacement.

Leased cars

Another amendment concerns leased cars. So far, if a self-proprietor has bought out a leased car, made it a part of his personal assets and then sold it as an individual within 6 months of the buy-out, no PIT has been payable. The new regulations extend that period from 6 months to 6 years. The extended period will apply not only to vehicles but all movables used for business purposes, as long as they were leased.

Nonetheless, there are also some unfavourable amendments too, among others, when cars used so far for private purposes are brought into business. So far, the initial value of such cars for depreciation purposes has been calculated as per the purchase price, whereas under the Polish Deal it will be the market value to make sure that the asset will be depreciated from its actual value (the market price includes the actual wear and tear of the vehicle before it is brought to business is ).