Fuel expenditure for the private use of employees


Much controversy arises as to whether the expenses for fuel for company cars, incurred by the employer, can be classified as tax costs. At the same time, there are doubts about the costs of fuel intended for the private use of employees.

The Ministry of Finance took a position on this matter. Well, in the opinion of the Ministry, expenses on fuel that are intended for the private use of employees may constitute a tax expense only if the value of this fuel is income for the employee.

Therefore, the entrepreneur should ask himself when the value of the said fuel will be the employee's income?

Fuel expenditure for private use by employees versus employee income

Pursuant to the Personal Income Tax Act, the employee's income may include:

  • all kinds of cash payments,

  • the monetary value of benefits provided in kind or their equivalents.

In addition, the employee's income also includes cash benefits paid by the employer, as well as unpaid or partially paid benefits received by the employee from the employer as part of the employment relationship.

In connection with the above, the employee's income should include any form of financial and non-monetary increase in the assets of the person employed by the employer. The purchase of fuel by the entrepreneur, which is used by the employee for private purposes, also counts as such an increase in the property of the subordinate.


According to the position adopted by the Ministry of Finance, if the expenses on fuel purchased for private purposes increase the employee's income, the entrepreneur may include this expense as tax deductible costs.

The car entered the company as a fixed asset

In a situation where the car meets the conditions for considering it as a fixed asset in the company, the entrepreneur has the right to enter it into the register of fixed assets, and thus make depreciation write-offs from it. At the same time, it is not important whether the car is used only for business purposes or whether it is used both privately and for business purposes.

If the car entered into the company's fixed assets register is used by an employee (also privately), then the entrepreneur has the right to make depreciation write-offs. This is because the depreciation write-offs constitute the taxpayer's tax deductible costs in their entirety.

Pursuant to Art. 22 of the Personal Income Tax Act, if the car is introduced as a fixed asset, expenses that are not directly related to private use, e.g. repair or inspection, may also be included in tax costs.