Car-related tax allowable costs and income taxes – tax optimisation strategies in 2018–2019

Abstract

The paper considers issues pertaining to the how costs of car purchase, car running costs, and its selling price can be claimed as tax deductible costs and settled for tax assessment purposes provided the vehicle has been purchased as a company car and features in taxpayer’s fixed assets and intangible assets register. Its aim is to discuss tax optimisation strategies in this area against regulations which expired at the end of 2018 and those which have replaced them in 2019. The author’s thesis reads: Changes in tax regulations targeting cars introduced in 2019 have significantly restricted tax optimisation possibilities but have not eliminated them completely. Research methods used in the paper include the analysis of the provisions of the Personal Income Tax Act and case studies.