The Ministry of Finance announces changes in tax aspects of leasing to enter into force 1 January 2019 They assume a quota limit of 150,000 PLN a year – this limit is to refer to the possibility of including leasing instalments in the cost of obtaining income. This means that leasing payments exceeding the limit 150,000 will not be considered as tax costs and thus will not reduce the tax base.
Another negative change for entrepreneurs in leasing concerns the limitation of the inclusion of leasing instalments to the cost of obtaining income when using a car for mixed purposes, i.e. at the same time for business and private purposes.
Any use of a car for private purposes will make only half of the lease payment considered a tax cost. Such a scheme would be similar to the current rules on VAT deduction from the purchase of a car used for mixed purposes. The deduction is not excluded, but it is difficult.
If someone wants to deduct the total VAT, they must meet certain registration requirements to prove that the car is not used to the least extent for private purposes. Similar realities can be expected in terms of the inclusion of leasing instalments in tax costs.
This would mean that crediting the entire instalment with the cost of obtaining revenue would require compliance with the registration requirements in order to prove the absence of any use of the vehicle for private purposes.