Poland: New Deal Act amends Personal Income Tax rules on Private use of Company Car

As part of the so-called ‘Polish New Deal’ Act, the rules for determining the amount of an employee’s income for tax purposes (Personal Income Tax or ‘PIT’), when using a company car for private purposes, have been amended.

The current regulations determine the amount of the employee’s lump-sum income for the use of a company car for private purposes, depending on the engine capacity (up to 1,600 cm3 – PLN 250, above – PLN 400).

From 1 January 2022, the above rule will be modified – when determining the amount of income, the power of the engine, rather than engine capacity, will be taken into account.

The use of a car with engine power up to 60 kW will result in a lump sum of PLN 250, and with engine power above 60 kW – PLN 400.

Moreover, the legislator has provided for the lower lump sum (PLN 250) in the case of private use of company electric cars.