Employee commuting cost reimbursement in Poland: when does it create taxable income?

Employee commuting cost reimbursement in Poland generally creates taxable employment income when the employer pays a cash allowance or reimburses ordinary travel between home and a fixed workplace. The amount should be included in payroll and subject to PIT. Employer-organised transport by bus may qualify for a separate exemption under Article 21(1)(14a) of the Polish Personal Income Tax Act.

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When is employee commuting cost reimbursement taxable in Poland?

Employee commuting cost reimbursement in Poland was addressed by the Supreme Administrative Court in its judgment of 12 March 2026, case II FSK 775/23. A cash reimbursement of ordinary home-to-work commuting costs generally constitutes employment income because an expense normally borne by the employee is ultimately covered by the employer.

The case concerned a lump-sum allowance for employees commuting to a workplace with poor public transport access. The NSA held that a difficult location, shift work or the employer’s operational need to maintain staffing do not, by themselves, create a PIT exemption.

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When can employer-organised transport be PIT-exempt?

The Polish Personal Income Tax Act provides an exemption for transport organised by the employer using a bus, defined as a vehicle designed to carry more than nine people including the driver.

Employers should therefore distinguish between:

• cash allowance or reimbursement – generally taxable employment income,
• employer-organised bus transport – may qualify for the statutory exemption,
• transport in a smaller vehicle – no automatic bus exemption; voluntariness, financial benefit and individual allocation of value should be assessed,
• business travel – subject to separate rules and not equivalent to an ordinary commute.

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Can internal rules create a tax exemption?

No. A PIT exemption must result from a specific statutory provision. A remuneration policy, management board resolution or employment contract cannot create an exemption on its own.

Article 21(1)(23b) does not provide a general exemption for daily commuting to a fixed workplace. It concerns specific local journeys using an employee-owned vehicle where reimbursement follows from other legislation.

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How should employers handle the benefit in payroll in Poland?

Where the reimbursement is taxable, the employer should:

• add its value to the employee’s other employment income,
• calculate and withhold the PIT advance payment,
• record the amount in payroll documentation and the employee’s PIT-11 information return,
• analyse social security contribution consequences separately.

Judgment II FSK 775/23 concerns PIT and does not directly determine ZUS treatment. Social security exclusions for free or partly paid transport should not automatically be applied to a cash lump-sum reimbursement.

Before launching an employee transport programme, HR, finance and payroll teams should define the benefit model, vehicle type, eligible employees, evidence of use and valuation rules.

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If you have any further questions or require additional information, please contact your business relationship person or use the enquiry form on the HLB Poland website.

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