Commuting to work

The Government Decree on the reimbursement of commuting to work has been modified

The Government has modified the Government Decree No. 39/2010. (II. 26.) on the reimbursement of commuting to work, according to this modification from 13th January 2017 just 60 % of the reimbursement of the commuting to work, which is defined by the Act on Personal Income (15 HUF/km) as tax-exempt support, has to be compulsorily paid to the entitled employees, if the conditions defined by the decree are fulfilled. (So employers are obliged to pay 9 HUF/km to the entitled employees.)

The amount, which is between the compulsory amount and 15 HUF/km, can be given according to the decision of the employer and it is still tax-exempt support. The reimbursement, which exceeds the amount of 15 HUF/km, counts as taxable income. The conditions which defined who are entitled to this support are unchanged.

We would like to emphasise that the modification has not affected the 15 HUF/km standard cost, which is applied in the case of the calculation of the reimbursement paid by the employer according to the company travel order (e.g. delegation) because of the business usage of the personal car.