Company leasing. 2019 is expected to bring new tax regulations. At the end of August, we were able to hear from the Ministry of Finance about planned changes regarding income taxes, PIT and CIT. Will leasing for companies still be profitable?
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First reading of the project
At the end of August, the Ministry of Finance informed about the introduction of planned changes to the acts relating to PIT and CIT. In June, we could also hear about the intention to increase the tax burden related to the use of company passenger cars. On October 2, the first meeting in the Sejm was held, which concerned the above-mentioned planned changes.
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What about tax deductible costs?
Currently, many entrepreneurs in Poland use leasing, because it is an ideal way to use a new car that we cannot afford directly. A person has the opportunity to drive a vehicle, let's say for 3 years, and then buy a car or replace it with a newer model. The installment of such a lease is included in the company's costs, and thus its owner pays less tax. The amendment to the act introduces a change which consists in the fact that the cost of the taken vehicle, which does not exceed PLN 150 (net amount plus non-deductible VAT) and its installment, will still be settled in the company's costs. However, if the price of the car is higher, it will not be possible anymore.
Changing the vehicle's depreciation amount
The Sejm also upheld the proposal to increase the initial depreciation for a passenger car to PLN 150. This news will surely please all drivers, as this amount is currently around PLN 000 (EUR 80). Additionally, it was proposed that the initial value of a passenger car, which is an electric vehicle, should be PLN 000.
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Operating costs
Operating expenses can also be counted as a tax deductible cost. At present, this is 50% of the actual expenses incurred. Although the Ministry wants to introduce a limitation of the possibility of including in tax deductible costs for the operation of a vehicle, this percentage will be increased from the current fifty to 75. Moreover, this range will include passenger vehicles used in business activities, but also private ones. The latter are those for which no VAT mileage register is kept.
When is the bill coming in?
According to the plan of the Ministry, the act is to enter into force on January 1, 2019. People who will conclude a leasing contract this year, but, for example, the vehicle will be picked up in 2019, have nothing to worry about. Their terms of the contract will be accounted for in accordance with applicable law today. However, if the lease is concluded after 1.01.2019/XNUMX/XNUMX or it is renewed or changed. Then the contract will be billed in accordance with the new rules.
