How to settle an entrepreneur's business trip?
Entrepreneurs travel for business purposes in the course of their business activities. It is connected with the expenses related to travel to the destination, accommodation and meals. In order for the entrepreneur to be able to charge their value with tax costs, he must prove that they are related to the conducted business activity. He should also take into account the exclusions provided for in Art. 23 sec. 1 of the Personal Income Tax Act (personal income tax).
The provisions of the Act on the Personal Income Tax Act do not define the concept of an entrepreneur's business trip. The document of the Ministry of Finance No. 120453 / K published on the website https://sip.mf.gov.pl shows that a business trip of a person running a business (entrepreneur) should be considered the performance of a task as part of business activity outside the city where it is located the entrepreneur's registered office or permanent place of business is established.
Expenses incurred in connection with the entrepreneur's business trip may be included in tax costs if the entrepreneur is able to prove that they are related to the company and are used to obtain revenues or to preserve or secure a source of income. However, such qualification of incurred expenses may be made provided that they are not listed in Art. 23 sec. 1 of the Pdof Act as not constituting tax deductible costs. In order to demonstrate that they have an impact on the conducted business activity, the entrepreneur should make every effort to properly document them. It may prove that the expenditure on the organization of a business trip is economically and rationally justified in terms of the business being run on the basis of the collected invoices and bills, as well as other evidence confirming the implementation of tasks outside the registered office or permanent place of business.
The expenses related to the entrepreneur's business trip, which may be included in the tax deductible costs, include: daily allowances, travel and commuting costs, accommodation costs.
Diet
An entrepreneur on a business trip will not settle the costs of actually incurred for food in the tax costs. However, it may include the value of per diems as corporate costs, taking into account the limitations resulting from art. 23 sec. 1 point 52 of the Act on Pdof. Pursuant to this provision, the value of per diems for business trips of persons running a business and persons cooperating with them - in the part exceeding the amount of per diems due to employees, specified in separate regulations issued by the competent minister, are not considered to be tax deductible costs. It is about the provisions of the ordinance of the Minister of Labor and Social Policy on business trips (Journal of Laws of 2013, item 167). Thus, the tax cost will be the value of per diems within the per diem allowance of employees employed in the so-called budgetary.
Transfer and access
In a situation where the entrepreneur travels by public means of transport (e.g. train, bus, ferry or plane), he may recognize the value of the ticket price as a tax cost. This entitlement is not affected by the type of means of transport and its class.
On the other hand, when the entrepreneur travels on a business with a passenger car that is a fixed asset, leased or rented, the expenses related to the use of this car may be fully settled in tax costs, if the car is used only for purposes related to the business activity conducted by the taxpayer. The taxpayer should then keep records for VAT purposes. The requirement to keep such records does not apply to VAT-exempt taxpayers. This is also confirmed by individual interpretations issued by the Director of KIS. In the event of using a passenger car for the so-called For mixed purposes, the entrepreneur has the option of including 75% of expenses for using a passenger car during a business trip as tax deductible costs. The Ministry of Finance, in a letter made available to our publishing house of May 30, 2019, indicated that the expenses related to the use of a passenger car (operating expenses) include, among others, expenses incurred for the purchase of fuel, car wash, possible repairs and spare parts, parking fees and tolls for using the motorway.
If, on the other hand, the entrepreneur uses a passenger car that is his property, which is not a component of the company's property, for a business trip, then 20% of the expenses incurred for the use of such a car will be included in the tax costs.
Entrepreneurs have the right to settle expenses for commuting by local means of transport in full in the company's costs. These will be expenses for commuting by public means of transport, for a taxi ride, in the amount indicated respectively by a ticket or other document confirming the amount of the expense incurred.
Overnight expenses
Corporate costs are expenses incurred by the entrepreneur during a business trip for accommodation, e.g. in a hotel, motel, but also the rental of private accommodation in the entire amount actually incurred resulting from the invoice (bill) documenting the purchase of the accommodation service. However, if, when leaving for business purposes, the entrepreneur purchases a hotel service, which also includes food costs, only the expenses for accommodation will be included in the cost bill.
Other expenses
Expenses for the purchase of tickets to various fairs, exhibitions, shows and baggage fees in the amount stated in the invoice or bill are also included in the tax costs.
It should be added that the costs of purchasing, for example, suitcases, travel bags, covers for clothes, accident insurance and medical treatment costs will not be met by the entrepreneur who is on a business trip. These are typically personal expenses, which makes them impossible to qualify for corporate expenses.
Legal basis
Act of July 26, 1991 on the personal income tax (Journal of Laws of 2019, item 1387, as amended)
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