Transport of employees to work

The exemption can only be applied if the conditions under which it is considered as tax deductible expense are met.

The exemption limit for transport is set at a maximum of € 60 in total per month. The amount of fringe benefit is determined based on expenses spent by the employer recalculated based on the vehicle capacity to 1 place. The exemption at the employee side is not conditioned by the partial settlement of this transport to the employer.

The transport provided in in-kind form exceeding this amount must be taxed by the employer in the employee's monthly salary.

The costs of employee’s transport can be included in tax-deductible costs by the employer only if:

• Provided to the place of work and back;
• Provided by buses for transport of ten or more passengers;
• The transport is provided because the transportation by the public carrier is not demonstrably carried out at all or to the extent corresponding the needs of the employer (for example, if the absence of the transport would disrupt continuous production activity or would result in labour shortages).

The fact whether the transport performed by the public carrier meets the needs of the employer needs to be proved by the employer whereas there is no specific regulation defining this term in detail.

An employer who provides a financial contribution to the transport of employees to work and back cannot apply the provisions of law relating to the ensuring of transport. The provision of a financial contribution for the transport represents a monetary income and its tax implications depend on the system of such benefit.