We invite you to read the report by Flotis on the use of company cars for private purposes.
Starting next year, employees who use a company car for private purposes will pay higher income tax (PIT). Such announcements from the Ministry of Finance began to reach the public at the end of August. Flotis, a company specializing in vehicle monitoring solutions, conducted research showing that the effects of the Ministry’s decision will affect as many as 90% of Poles who drive company vehicles.
The analysis shows that companies are willing to lend company vehicles to employees. As many as 59% of respondents declare that they can use them for any private purpose, and another 35% with certain restrictions.
What are we allowed to do with a company car?
It turns out that company car owners decide for themselves what they are allowed to do. Many companies do not regulate the issue of lending company vehicles to employees. Only 32% of companies have clearly defined rules that employees must follow. These are most often corporate-type companies. In one in three companies, the employee has complete freedom in using the vehicle. Others apply minor restrictions, e.g., a ban on traveling outside a specific zone, or define the rules only verbally. It is worth noting that employees appreciate this approach by the company. Almost half of the respondents declared that they treat the car as a bonus from the employer, and another 32% believe that it is a tied transaction that provides mutual benefit to both the employee and the employer.
How much can the state earn from the additional tax?
In the context of legal changes, data regarding the number of kilometers covered daily by a statistical company car driver seem important. Flotis research shows that it is about 30 km per day. With 20 working days a month, this means almost 600 additional kilometers per month.
It is also worth asking for what purpose the employee covers the additional kilometers? The answer is not surprising: most drive family members to work or school, go shopping, and run errands. It is also worth noting that almost half of the respondents take a company car on family vacations.
The report in PDF format can be downloaded below.