On 1 September 2021, an amendment to the Decree on the tax treatment of reimbursement of costs and other income from employment (the Decree) entered into force for private sector, which affects the tax treatment of transportation costs to and from work. The changes will apply to expenses for September 2021, which employers are expected to pay in early October.
Under the new regulation, the reimbursement for transportation costs to and from work shall not be included in the tax base of income from employment up to the amount of:
- EUR 0.18 for each completed kilometre of distance between the usual place of residence and the place of work for each day present at work, if the place of work is at least one kilometre away from the employee’s usual place of residence, or
- EUR 140, if the amount calculated in accordance with the previous indent is less than EUR 140 per month.
Determining the reimbursement of transportation costs to and from work under the amended Decree has the following advantages:
- recalculation of the reimbursement by working days for an amount up to EUR 140 is no longer necessary,
- the employer and the employee may agree on any amount up to EUR 140,
- the collection of data on the prices of monthly tickets in public transport is no longer necessary.