Employers can reimburse employees for using personal vehicles for business travel, commuting, or company-owned cars.
While there is no statutory mileage rate in Hong Kong, companies should ensure that reimbursement rates are reasonable and aligned with internal policies.
Reimbursement methods include:
- A fixed rate per kilometre;
- Actual fuel and maintenance cost reimbursements.
Some companies reference the Civil Service employee rates as a benchmark.
For information on tax implications, visit the Inland Revenue Department.