From January 17, 2023, new rates for vehicle mileage records apply, i.e. the so-called mileage. As a result of inflation and the increase in fuel prices, which contributed to the increase in vehicle operating costs, we have new rates. They were introduced after 15 years - the previous rates were valid from 2007. The 2024 kilometer rate has not changed since last year - check the current rate.

Mileage – what is it?

Vehicle mileage records, commonly known as mileage, are a register of expenses incurred in connection with the use of vehicles in business activities. They are obliged to keep such a register entrepreneurs who want to benefit from the 100% deduction of costs from the use of a company car. They can also run a kilometer employees who use a private car for business purposes. However, the mileage fee applies not only to passenger cars, but also to motorcycles and mopeds not belonging to the employer. However, trucks (with a total weight over 3.5 tons), which are usually used for business purposes, are exempt from mileage mileage. 

Mileage for an entrepreneur – when does it have to be run?

The Act of October 23, 2018 amending the Personal Income Tax Act, the Corporate Income Tax Act and certain other acts abolished the need to keep mileage for income tax purposes - this applies to entrepreneurs who use private passenger car and want to include the expenses related to its operation in their company costs. Using a private car for business purposes in 2024 does not require preparing a vehicle mileage record, and the taxpayer can settle 20% operating costs – regardless of the number of kilometers traveled on business.

The situation is different in this case company passenger cars, which constitute fixed assets or are used on the basis of leasing, rental or tenancy. In such a situation, to count down 100% costs related to the use of a company car, you must keep a mileage record. An entrepreneur who does not keep such a register may only include it in tax deductible costs 75% operating costs.

Mileage 2024 – what is the current rate?

The 2024 mileage rate was changed by the Regulation of the Minister of Infrastructure of December 22, 2022 amending the regulations on the conditions for determining and the method of refunding the costs of using passenger cars, motorcycles and mopeds not owned by the employer for business purposes. 

The new rate per km (2024) is valid from January 17, 2023 and is:

  • PLN 0.89 – passenger car with an engine capacity of up to 900 cm3,
  • PLN 1.15 – passenger car with an engine capacity above 900 cm3,
  • PLN 0.69 - motorbike,
  • PLN 0.42 – moped.

How to calculate mileage height? 

Using a private car for business purposes involves the possibility of receiving reimbursement of operating costs from the employer. An employee can apply for reimbursement of expenses in many situations, for example when he or she drives his or her own car to a meeting with a client or on a business trip. 

The rate per kilometer (private car) in 2024 requires some calculations. Well, the employer is obliged to return it the sum of kilometers traveled multiplied by the rate per 1 km. The refunded amount constitutes the tax-deductible cost of a person running a business. It is worth noting that an entrepreneur may set higher rates per km than the regulation assumes. 

Example 1: In accordance with the contract, the employed employee uses his or her own car for business purposes. In January, the employee drove 600 km, which he included in his mileage. The engine capacity is 1600 cm3. The statutory rate per km applies in 2024, which for vehicles with an engine capacity above 900 cm3 is PLN 1.15/km.

600 km x PLN 1.15/km = PLN 690 – the entrepreneur will return this amount to the employee and include it in tax-deductible costs.

Example 2: In accordance with the contract, the employee uses his own car for business purposes. In January he drove 600 km, which he included in his mileage. The engine capacity is 1600 cm3. Even though the statutory rate per km in 2024 for vehicles with an engine capacity above 900 cm3 is PLN 1.15/km, the employer has set a different (higher) rate of PLN 1.30/km.

600 km x PLN 1.30/km = PLN 780 – the employer returns this amount to the employee, but can only include the number of kilometers traveled multiplied by the statutory rate (PLN 1.15/km), i.e. PLN 690, as tax deductible costs. The remaining PLN 90 cannot be included in the costs. 

Kilometrówka – accounting services for entrepreneurs

Vehicle mileage records are one of the registers that some entrepreneurs must keep. Open Profit accounting office within accounting services keeps not only the book of revenues and expenses or accounting books, but also the necessary registers, including VAT, records of fixed assets and vehicle mileage records. With us, you can reduce formalities to a minimum and receive professional services Consulting services without leaving home - we operate at 100% online, and our offer is addressed to small companies, sole proprietorships and people on B2B contracts. We invite you to cooperate! 

FAQ

How much was the mileage before the change in 2023?

From 2007, the rate per km was:

  • PLN 0.5214 – passenger car with an engine capacity of up to 900 cm3,
  • PLN 0.8358 – passenger car with an engine capacity above 900 cm3,
  • PLN 0.2302 - motorbike,
  • PLN 0.1382 – moped.

What must a mileage report contain?

The mileage in 2024 must include:

  • vehicle registration number,
  • starting and ending date of keeping the register,
  • meter reading on the date of commencement of keeping the register,
  • meter reading at the end of each billing period,
  • counter reading on the date of completion of the register.
  • entry of each person driving the vehicle along with the date and purpose of the trip, route description, number of kilometers and driver details,
  • the number of kilometers traveled at the end of each billing period and on the date of completion of the register.

Does an entrepreneur using his or her own car have to keep a mileage record?

NO. The Act of October 23, 2018 abolished the obligation to keep mileage records for personal income tax purposes. Currently, there is a fixed limit on expenses related to the use of a private car for business purposes, which is 20% of company costs, e.g. for the purchase of fuel, oil or third party liability and AC insurance.