The opinion of the Ministry of Finance confirmed that if 10% of personal income tax is calculated and paid for the undocumented payment of compensation for arrival and departure expenses, the stated expense is recognized in the tax balance in the tax period when the said compensation was paid.
Namely, in the case when the reimbursement of transportation costs for arrival and departure from work is not documented by an appropriate credible accounting document:
– is subject to payroll tax at the rate of 10%,
– contributions for compulsory social insurance are not paid and
– if the compensation in question is taxed with payroll tax at the rate of 10%, it is recognized as an expense in the tax balance in the tax period in which it was paid, pursuant to Article 9, paragraph 2 of the Law on Corporate Income Tax, Kamatica reports.