Professional use of a private computer: what compensation?

When an employee uses his private computer to work from home, the employer can pay the employee a flat-rate compensation. What conditions must be met for this compensation to be considered a non-taxable reimbursement of expenses?

General

In principle, all allowances received as a result of or in connection with the professional activity are taxable as remuneration. However, an allowance may be considered as a non-taxable reimbursement of the employer's own expenses if the employer can prove that the allowance is intended to cover expenses that are properly due by him  and the allowance is actually spent on such expenses.

The employer may determine these allowances on a flat-rate basis, without them losing their nature of actual expenses, where their amount has been established in according with serious standards resulting from repeated observation and sampling.

The circular of 26 February 2021 on employer’s compensations for homework clarifies the income tax consequences of such compensations for employees.

What do we mean by homework?

Homework is understood to mean any form of organisation and/or performance of work in which work, that could also be carried out in the employer's workplace, is regularly carried out outside that workplace.

The notion of 'workplace' is to be understood in a broad sense, encompassing the activities of employees that are normally carried out at the customer's premises or at another location (e.g. at a satellite office of the employer, i.e. a decentralised room of the employer or a room that the employer puts at the disposal of the employee).

Homework must therefore be carried out in the employee's private premises. Work performed in a satellite office of the employer is not homework. A satellite office is considered to be part of the employer's workplace.

The circular refers to homework as part of normal working hours and therefore does not regulate the issue of employees working at home outside normal working hours (e.g. in the evening or at the weekend).

Private computer

By private computer the tax circular means all types of computer equipment, namely both desktops and portable PCs (laptop) and tablets, as well as peripherals and software required for the home work.

What amount?

When the private computer is actually used by the employee in the framework of homeworking, the compensation of the employer can be determined on a flat-rate basis but it shall not exceed 20 euros per month.

In the case of part-time work, this maximum amount need not be reduced proportionally.

The administration accepts the allocation of this flat-rate amount on condition that the employer does not contribute to these costs in any other way (e.g. by bearing part of the purchase price of the computer or by providing a portable PC or tablet himself). Moreover, no extra compensation allowance may be granted for the professional use of private peripherals.

Accumulation with other flat-rate compensations

The employer may grant the following flat-rate compensations on top of the compensation of maximum 20 euros per month:

• The flat-rate office allowance of 129.48 euros per month (144.31 euros for the second quarter 2021), and
• A compensation of maximum 20 euros per month for the professional use of a private Internet connection and subscription.

Exclusions

The scheme described in this circular cannot be applied to company managers or employees who fall under special regimes such as, for example, foreign executives, salary split for employees who work in different countries for the same employer, etc.

And in terms of social security?

The NSSO has decided to follow the tax circular regarding the qualification of the reimbursements in the framework of homeworking expenses.

Entry into force

The circular entered into force on 1 March 2021, but the tax authority will take into account the principles contained therein for homework situations that have occurred since 1 January 2020.

The circular does not affect the rulings in force.

If you have any legal questions about employer compensation for homework its application, be sure to contact our legal consultants at legalpartners@partena.be.

Sources: Circular 2021/C/20 on employers' compensations for homework, https://eservices.minfin.fgov.be/myminfin-web/pages/fisconet/document/9ab46041-d0bf-4438-b707-e7b847c4794c/2021%252FC%252F2026 February 2021; Instructions from the NSSO (4 March 2021) https://www.socialsecurity.be/employer/instructions/dmfa/nl/latest/intermediates