Mileage allowances and car reimbursement rates in Poland (2024)

Mileage rates set the rules for how much an employer is allowed to reimburse an employee—without it counting as taxable income. The amount is intended to cover travel costs including fuel, insurance and road tax. In Poland, transport covered includes private cars, motorbikes and mopeds.The process differs from country to country. Each system has its own allowances, some have higher rates than others, some include motorbikes, others include daily trips to the office. For example, in Finland and Norway, commuters can claim a certain amount, while in France and Italy, daily commutes aren’t covered.When used correctly, the system can be a big win-win for employers and employees alike. Tax-exempt mileage reimbursements mean that workers don’t have to foot the bill for travel expenses, and businesses can make the most of significant tax deductions while supporting their employees. Poland’s mileage rate information is updated on an annual basis, so it’s essential for companies to keep up to speed in order to remain compliant. Sticking to government guidelines is simple—just remember that these journeys must be strictly business-related. As long as the reason for the trip relates directly to the employee’s role (as stated in their contract), it can be anything from a client visit to a conference.

In Poland, the maximum amount payable to each employee depends on the type of vehicle and its engine capacity. These rates are set each year by

the Ministry of Infrastructure

.The amount for mileage reimbursement is a deductible cost for the employer. However, it’s important to remember that, according to Article 16(1)(30) of the CIT Act and Article 23(1)(36) of the PIT Act, the employer’s expenses above the limit are not a taxable cost. In other words, the amount exceeding the state-defined rates will be considered part of the employee’s taxable income.Here are the mileage reimbursement flat rates in Poland for 2024:

In addition to mileage reimbursements, Poland also has a per diem system. This is separate to mileage reimbursements, but it similarly involves business travel and tax-deductible reimbursements.If you’re employed in Poland and you’re heading off on a business trip, you can claim a tax-free subsidy for travel costs, including food, accommodation and transport. Importantly, it is not part of an employee’s paycheck.In Poland, there are two separate per diems: one for domestic trips and one for international travel. Each of these has separate rates, depending on whether the trip is longer or shorter than 24 hours.The maximum tax-free rates for domestic business trips are set out each year by the

Ordinance of the Minister of Labour and Social Policy.

As in most countries, these rates apply to public sector employees but also establish the minimum allowance levels for private sector employees.Like with mileage reimbursement, an employer technically can reimburse more, but any amount exceeding the government guidelines will not be considered tax-exempt. After 15 years with no change, in 2023, the per diem and lump sum allowances for business trips significantly increased. Here are the rates today:

For each day of the domestic trip, the employer can grant the employee a maximum tax-free allowance of 20% of the daily allowance (currently standing at PLN 9). It’s important to note, the employee is not entitled to the allowance if they don’t bear the costs of the local transport.

The maximum tax-free rates for business trips abroad depend on the destination country—but the minimum allowance for international business trips cannot be lower than the allowance for domestic business trips. For international journeys, If the journey lasts longer than 24 hours, the per diem rate constitutes a full allowance (100%) for each day. These are the rates for single-day trips: 

To cover the costs of local transport, the employee is entitled to a maximum transport allowance of 10% of the daily allowance of the destination country for each commenced day.Additionally, the employee is entitled to a maximum allowance of one time the daily allowance of the destination country to cover the costs of travel to and from the railway station, bus station, airport or seaport. If the employee bears these travel costs one way only, they are entitled to 50% of the daily allowance.The employee is not entitled to the above transport allowances if they use a business or private motor vehicle, motorcycle or moped or if they do not bear the transport costs.

Not included in the Polish mileage reimbursement system are trips made for personal errands, or trips to carry out tasks not directly related to the employee’s role (as stated in the labour contract). 

In Poland, as in the rest of Europe, employees must submit a written statement detailing the number of kilometres covered while using his or her private car for business purposes in a respective month. The claim is then handled internally—no government form has to be filled out.

Now you’re an expert on the Polish mileage reimbursement system, you just need to keep track of employee movements. The most effective way to keep a firm grip on comings and goings is to connect your expense management solution to a specialised business travel management platform, like TravelPerk.Connecting your expense management tools takes seconds—and can save hours. With a selection of

third-party integrations

from Divvy to Ramp, TravelPerk integrates seamlessly into your company’s existing tech stack, helping you level up your business travel management while avoiding any new tech for employees to get their heads around.It’s quick, easy, and simple—just like your next business trip. From Poland to Portugal, you can count on TravelPerk to help you take the reins.