Amendments to the compensation of a personal car
Amendments starting from September 1, 2014 to compensation paid for use of a personal car
August 8, 2014
On July 3, 2014, the State Gazette (Riigi Teataja) published an amendment of the Income Tax Act that will take effect on September 1, 2014. If driving diary is kept, the tax exempt limit of compensation paid to one person for service or employment related use of a personal automobile is 0.30 euros per kilometer, but not more than 335 euros during each calendar month per each employer paying the compensation.
Consequently, starting from September 1, it will no longer be possible to pay a tax exempt compensation of 64 euros per month for use of a personal automobile without keeping a driving Records diary.