How are different expense categories treated in Poland for reimbursement?

In Poland, expense categories are treated in various ways for reimbursement, and many have specific requirements regarding taxability

Taxable Categories

Mobile Phone Usage: Business usage of a personal mobile phone is taxable and processed via payroll.

Broadband Internet at Home: Home broadband internet is considered a taxable benefit by the Polish tax authorities and must be grossed up and included in payroll.

Gifts: Gifts provided to clients require supervisor approval and are considered fully taxable.

Expenses with Special Requirements

Mileage: Mileage is reimbursed using statutory rates based on vehicle type:

• PLN 0.89 per km for cars up to 900 cm³
• PLN 1.15 per km for cars over 900 cm³
• PLN 0.69 per km for motorcycles
• PLN 0.42 per km for mopeds

Detailed mileage records and vehicle documentation are mandatory.

Parking and Tolls: Parking fees and tolls incurred during business journeys are reimbursable regardless of mileage limits when supported by valid receipts. Parking fines, clamping fines, or penalties are never reimbursed.

Per Diem Allowances: Statutory per diems are tax free up to defined limits.

• Domestic travel: The statutory per diem is PLN 45 for trips longer than 8 hours. Any excess above PLN 45 is taxable.
• Foreign travel: Per diem rates depend on the destination country. For trips shorter than 8 hours, employees are entitled to 1/3 of the foreign per diem. Additional lump sums may apply for local transport and travel to/from stations or airports.
• Per diems must be reduced when meals are provided, in line with statutory percentages.

Non-Taxable Expenses

These include business travel transportation, accommodation during business trips, meals during business travel up to per diem limits, statutory domestic and foreign per diems within limits, mileage reimbursed within approved statutory rates, parking and tolls with receipts, client entertaining when properly documented, computer equipment and software used exclusively for business purposes, stationery and office supplies, dongles and data cards, foreign currency exchange commissions, exchange rate differences, visas and work permits when approved, business-related training, and exceptional business-related cancellation costs, provided all expenses are wholly, exclusively, and necessarily incurred for business purposes and supported by compliant documentation.

For all expense types, proper documentation is mandatory, including VAT-compliant invoices or itemized receipts where required. Expenses must be incurred solely for business purposes, approved by the supervisor, and submitted within the required timeframe to ensure compliant reimbursement under Polish tax regulations