Polish government offers significant tax deduction for car expenses, providing over 2,000 PLN in annual savings to eligible taxpayers.
Who is Eligible for the Car Tax Deduction?
People with disabilities and taxpayers supporting such individuals can benefit from the car tax deduction as part of the rehabilitation allowance. This significant tax benefit provides substantial savings for those meeting specific criteria.
Basic Requirements for Eligibility
To qualify for the deduction, taxpayers must meet two fundamental conditions: either they have a disability themselves or they support a person with disabilities. The deduction applies specifically to vehicles owned or co-owned by the disabled individual, the taxpayer, or a disabled child under 16 years of age.
Required Documentation
Claiming the deduction requires documentation of incurred expenses and proof of disability. Acceptable documents include disability certificates, decision cards on degree of disability, or decisions on establishing disability.
Eligible Expenses
The deduction covers vehicle operation costs including fuel, insurance, mandatory inspections, and vehicle tax. Limited expenses can be deducted up to 2,280 PLN annually. Unlimited deductions apply to costs of adapting vehicles to accommodate disabilities.
Income Limit Exceptions
Certain benefits are not counted toward annual income limits for this deduction, including pensions, disability pensions, social pensions, temporary incapacity benefits, and special pensions.
Common Mistakes to Avoid
Taxpayers should be aware that agreements of loan do not qualify for the deduction. The vehicle must be owned or co-owned by the eligible person. Additionally, all expenses must be properly documented and claimed correctly to avoid potential issues with tax authorities.
