Philippines
Reimbursement for using a private vehicle for work purposes
For a private-sector mileage claim in the Philippines in 2026, use the rate per kilometer or actual-expense method approved by your employer. A company mileage rate is not a government-set tax-free allowance. Government employees have a separate framework for official travel under Executive Order No. 77, series of 2019.
Company mileage and fuel reimbursement
Before using your own car or motorcycle for work, confirm which trips qualify and how your employer pays for them:
- Mileage reimbursement: approved business kilometers multiplied by the agreed company rate.
- Fuel or gas reimbursement: eligible fuel expenses supported by the documents your employer requires.
- Fixed transportation allowance: a regular payment whose payroll treatment is different from an expense claim.
Check whether the mileage rate includes fuel, maintenance, tolls and parking. Do not add the same expense twice. Keep ordinary home-to-office travel and personal detours separate from client visits and other approved business trips.
For example, if your employer approves ₱10 per km, an 80 km business trip gives a mileage claim of 80 × ₱10 = ₱800. This is an illustrative company rate, not an official Philippine rate or a tax-free threshold.
Government employees using a private vehicle
Executive Order No. 77 sets a national framework for official local and foreign travel, supplemented by agency procedures. For covered official local travel using a private vehicle, the rule is reimbursement of the equivalent cost of the customary mode of transportation, rather than a standard peso-per-kilometer payment. Gasoline and fuel costs for the private vehicle are not reimbursed under this rule.
Obtain the required travel approval and follow your agency's claim and supporting-document requirements. A private company's mileage policy does not replace government travel rules.
Is a transportation payment tax-free?
BIR rules generally include fixed transportation allowances in regular taxable compensation. Reimbursement of business expenses has separate conditions, including accounting for the expenses and providing the required supporting evidence. Calling a payment “fuel reimbursement” or keeping a mileage log does not by itself establish a tax exemption.
Ask payroll which documents and tax treatment apply to your arrangement. An employee's reimbursement claim is also different from a self-employed person's business-expense deduction.
Keep a mileage log for your reimbursement claim
Record the date, starting point, destination, business purpose, vehicle and distance in kilometers. Keep the approved rate or expense policy with your records, plus invoices, receipts and other evidence needed for the claim. For an advance, complete the required liquidation of expenses and return any unused balance.
Motolog helps you track business mileage automatically and organize trip reports. Set a custom reimbursement rate to match your company's policy, then review the journeys and supporting documents before submitting your claim.