Costs proper to the employer for homework

The employer may grant, under certain conditions, a flat-rate allowance as a reimbursement of costs when his employees work from home on a regular and structural basis. This allowance is intended to cover the costs incurred by the employees and borne by the employer. In the particular context of the health crisis, the tax authorities have published a circular reminding of a number of principles and specifying certain conditions.

Flat-rate allowance? What amount?

When an employer grants an allowance to an employee, it can only be considered as a non-taxable reimbursement of the employer's own costs, provided that the employer provides double proof:

- that the allowance is intended to cover costs proper to him;

- that the allowance has actually been spent on such costs.

However, the employer may determine these allowances on a flat-rate basis where their amount has been established in accordance with serious standards resulting from repeated observation and sampling.

Thus when the employees actually work from home on a regular and structural basis, i.e. at least 5 working days per month, the employer may grant a flat-rate homework allowance of up to € 129.48 per month (amount in force since 1 April 2020). For the beneficiary, this allowance is a non-taxable reimbursement of the costs proper to the employer.

For whom?

The flat-rate allowance may be granted to employees who work from home on a regular and structural basis, and no distinction may be made within a company between the different job categories to which home working relates.

The allowance should not be reduced proportionally in the case of part-time work. If a part-time worker actually meets the conditions to receive the flat-rate homework allowance, the employer may grant the maximum flat-rate homework allowance, regardless of the number of hours provided for in the employment contract.

On the other hand, the allowances paid to employees in a ‘salary split’ situation as a reimbursement of the employer's proper costs must be reduced in proportion to the activity carried out in Belgium by these employees.

Finally, the amount of the flat-rate homework allowance may also be paid during the normal annual leave, but must be reduced proportionately in the event of long absence for reasons other than annual leave.

What kind of costs?

The flat-rate allowance is intended to cover office costs. These are costs related to the furnishing and use (including rent and any depreciation) of a desk, printing and computer equipment, office supplies, utilities such as water, electricity and heating, maintenance, insurance, property tax, ... in the employee's place of residence.

In order to avoid possible duplication of allowances granted, the flat-rate homework allowance cannot be combined with any other allowance for office costs that the employee was already receiving. Likewise, the costs proper to the employer allocated on a flat-rate basis may no longer be borne in any other way or on the basis of supporting documents.

Formalities

The employer must always have nominative lists available of the employees who benefit from the flat-rate homework allowance.

In addition, the flat-rate homework allowance paid as reimbursement of the employer's proper costs must be justified by means of individual tax sheets. On tax sheet 281.10, next to section b) of box 26 'miscellaneous information', the mention 'YES - serious standards' must be filled in, since these flat-rate reimbursements of costs has been determined on the basis of serious standards.

In addition, if an employer wishes to grant flat-rate reimbursements for other costs proper to the employer than the office costs referred to above, or grant for office costs flat-rate reimbursements for the employer's proper costs that do not meet the conditions referred to above or if he wishes to provide certain other items, such as an office chair, he can always submit a request for an advance ruling to the Office for advance tax rulings (SDA/DVB).

Entry into force

The circular is applicable retroactively from 1 March 2020.

Source: Circular 2020/C/100 on costs proper to the employer for homework of 14 July 2020