On 10 October 2023, the Voivodeship Administrative Court in Jelenia Góra (ref. no. I SA/Wr 906/2022) issued a judgment on the taxation of the cost of free transportation of contractors to and from the workplace. In the ruling, the court stated that income on this account is generated and, consequently, taxed only when it is possible to individualize it. This means that it is possible to attribute the value of the transportation used by the contractor, expressible in material or monetary terms, to specific contractors.

If the principal does not keep and does not intend to keep records of the contractors who use the transportation, and does not check attendance and does not verify who used the transportation and when, no income arises from it.

Consequently, this benefit, as not constituting taxable income, should not be included in the social security contribution calculation base.

Find more in the PRO HR October 2023