The expense on car rental is not an expense connected with using the car. Consequently, such an expense is tax-deductible in Poland beyond the limit resulting from the vehicle mileage logbook.

The taxman agrees with the taxpayers who recognise the car rental as tax-deductible costs beyond the cap resulting from the actual mileage multiplied by the standard mileage rates. The general advance tax ruling issued by the Minister of Finance on 8 November 2013 (no. DD2/033/55/MWJ/13/RD-111005) confirms that such an expense is a tax-deductible cost pursuant to the general rules set out in Article 22(1) PIT Act and Article 15(1) CIT Act. This approach follows the prevailing case law which lets the enterprises deduct the full value of the car rental (among others, the SAC's ruling of 17 October 2012, file no. II FSK 467/11, the SAC's ruling of 20 August 2013, file no. II FSK 2446/11 and II FSK 2447/11).

In the justification of his view, the Minister of Finance said that the fee for using a passenger car under a rental agreement was an expense other than a car operating expense. It is an expense on obtaining a legal title to use someone else's vehicle and not an expense on using a vehicle. It is only in the latter case that the expenses must not exceed the product of the actual mileage multiplied by the standard mileage rates.

The guidance above is followed by, among other things, the advance tax ruling issued by the Director of the Tax Chamber in Poznan on 17 February 2014 (file no. ILPB3/423-686/10/14-S/JG). In the context of the SAC's rulings and the binding nature of the general advance tax ruling, the Director of Tax Chamber agreed with the claim of an enterprise which rented cars for its business activity and treated the rental expenses as tax-deductible costs. The applicant's practice of deducting expenses on operating the rented cars without observing the above-mentioned limitations was found to be correct.

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