Compensation for using one’s own car (Kms Payment)

Quantitative values of Travel and driving Subsidies fixed for public servants:

The living allowance and the amounts of money received for using one’s own car when being at the employer’s service, when exceed the legal limits, and the sums meant for travels, trips or duty travels, which have not been rendered account until the end of the financial year, are considered to be income on contract work.

Artigo 2nd of IRS Code (Code of Personal Income Tax)

Expenses with living allowance and with compensation - when the employee uses his/her own car when being at the employer’s service - and not invoiced to clients, registered at any pretence, whenever the employer does no keep, for each payment made, a record through which it is impossible to control the duty travels to which the expenses refer to, namely the locations, the time spent, the purpose and, when it is the employee’s own car, the identification of the vehicle and its owner, as well as the number of kilometres made, except for the part liable for IRS taxation regarding the beneficiary, are not deductible for the purpose of calculating the taxable income.

Nr 1, paragraph f) article 45th IRC Code (Code of Corporate Income Tax)

The deductible expenses related to the living allowance and compensation for the duty travels made by the worker with his/her own car when being at the employer’s service, not invoiced to clients, nor entered in the accounts at any pretence, except for the part liable for IRS regarding the beneficiary… as well as non-deductible expenses pursuant to paragraph f) of nr. 1 of article 42^nd borne by the taxable persons that show a loss during the financial year to which those refer to, are levied autonomously.

Nr 9 of article 88th of IRC Code (Code of Corporate Income Tax)

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This note is only for information and does not hold its divulgers responsible. For thorough information you must consult the Law.