Publication date: 23.04.2024
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Are taxi expenses taxable during the business trip of a budget employee: clarification of the DPS
If, with the permission of the head of a legal entity that is fully or partially financed from budget funds, an employee is reimbursed for the costs of using a taxi during a business trip within the territory of Ukraine, the amount of such costs is included in the total monthly (annual) taxable income of such an employee as additional benefit and is subject to personal income tax on a general basis.
At the same time, if the specified taxi expenses were incurred by the employee during a business trip abroad, the amounts of reimbursed travel expenses are not subject to personal income tax, provided that the employee provides supporting documents certifying the cost of these expenses and fulfillment of all other requirements established by Clause 170.9 of Article 170 of the Tax Code of Ukraine (hereinafter - PKU).
The main department of the State Tax Service of Ukraine in the Zaporizhia region explains that the taxation of the income of individuals is regulated by Chapter IV of the Civil Code, according to subsection 165.1.11 of clause 165.1 of Article 165, which does not include the total monthly (annual) taxable income of the taxpayer, in particular, funds received by a tax payer for a business trip or for a report and calculated in accordance with clause 170.9 of article 170 of the Code of Civil Procedure.
In accordance with the paragraph of the second subparagraph "a" of subparagraph 170.9.1 of clause 170.9 of Article 170 of the Code of Civil Procedure is not the income of a taxpayer who is a natural person who is in labor relations with his employer or is a member of the management bodies of enterprises, institutions, organizations, the amount reimbursed to him in accordance with the procedure established by law for travel expenses within the limits of actual expenses, in particular, for travel (including luggage transportation, booking transport tickets) both to the place of business trip and back, as well as to the place of business trip (including on rented transport).
The expenses specified in the second paragraph of subparagraph "a" of subparagraph 170.9.1 of item 170.9 of Article 170 of the Code of Civil Procedure are not subject to taxation by personal income tax only if there are supporting documents certifying the cost of such expenses.
At the same time, any business trip expenses are not included in the taxpayer's taxable income if there are documents confirming the connection of such a business trip with the economic activity of the employer/party making the business trip.
In accordance with paragraph 6 of Section II of the Instructions on business trips within Ukraine and abroad, approved by Order No. 59 of the Ministry of Finance of Ukraine dated March 13, 1998 (hereinafter - Instruction No. 59), which regulates the business trips of employees of state authorities, enterprises, institutions and organizations , which are fully or partially financed from budget funds, travel expenses (includingtransportation of luggage, reservation of transport tickets) to the place of business and back are reimbursed in the amount of the cost of travel by air, rail, water and road transport of general use (except for taxis), taking into account all costs related to the purchase of travel tickets and the use of bedding in trains, and insurance payments on transport.
The seconded employee is reimbursed for the costs of traveling by public transport (except for taxis) to the station, wharf, airport, if they are located outside the settlement where the seconded employee works permanently, or to the place of residence on the seconded job.
The seconded employee is also reimbursed for travel expenses by public city transport (except for taxis) according to the route agreed by the manager, and on rented transport at the place of business trip (according to supporting documents).
According to Clause 9 of Chapter III of Instruction No. 59, expenses for using a taxi or renting a motor vehicle can be reimbursed only with the permission of the head of the enterprise (according to supporting documents).
