Mileage log for board members
If you sit on the management board of your own OÜ and drive your own car on company business, the company can pay you up to €550 a month tax-free. There's one condition: every trip is in the mileage log.
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The tax-free car allowanceisn't only for employees. Alongside employees and public servants, the law names management board members as recipients, and that holds when the company is your own. The owner-director of a one-person OÜ who drives to clients, suppliers or sites in their own car can be paid by the company on the same terms as any employee.
Conditions
- up to €0.50 per kilometre and up to €550 per calendar month, with no income or social tax;
- the car is an M1 or M1G passenger car that doesn't belong to the company;
- every work trip is in the mileage log: driver, registration number, odometer readings, date, route and purpose;
- the company declares the amounts once a year on the INF 14 form.
If the car was bought or leased in the company's name, the per-km allowance can't be paid. Company car rules apply instead, and that's a different topic.
What it adds up to
| Work km per month | Per month | Per year |
|---|---|---|
| 400 km | €200.00 | €2,400.00 |
| 800 km | €400.00 | €4,800.00 |
| 1,100 km | €550.00 | €6,600.00 |
| 1,500 km | €550.00 (cap) | €6,600.00 |
Paid out as salary or dividends, the same amount would carry tax. As an allowance it moves from the company account to yours tax-free, as long as the mileage log holds up. Work out your own numbers with the allowance calculator.
Why the MTA looks at owners
An employee's allowance is checked by the employer. When a board member pays the allowance to themselves, nobody else reviews it, and the MTA knows that. So in an audit they ask for the mileage log and compare it with real driving: do the kilometres match the route, do the odometer readings run in sequence, is the purpose really company business.
Mistakes found in audits
- €550 every month. The same amount month after month with no trips behind it is the first thing that stands out.
- Round numbers. 100 km here, 200 km there. Real trips don't look like that.
- A log filled in at year-end. Trips written down after the fact don't line up with the calendar or the odometer.
- Home to office. The daily drive between home and a permanent workplace is generally not a work trip.
- The car is in the company's name. No per-km allowance for a company car.
The full list is on the logbook requirements page.
When there are several board members
Each keeps their own mileage log and each has their own €550 monthly cap. Two board members who both drive their own cars have two separate logs and two separate limits.
How DrivLog helps
You add a trip at the car in a few seconds: from, to and why. Kilometres come from the addresses, the odometer fills itself in, and the €0.50 rate and €550 cap are applied automatically. At month-end you export a PDF or Excel file for your accountant. It costs €3 a month, less than the allowance for six kilometres.