The home working allowance, which can be paid targeted exempt from payroll taxes from 2022, is partly limited deductible from profits for income and corporate tax purposes.
Accrual amount
We describe this targeted exemption in our article Exempt compensation for working from home.
From the recently published Note following the report to the Tax Bill 2022, it appears that the amount of €2 per day includes the following costs:
| Electricity consumption | € 0,50 |
| Water consumption | € 0,05 |
| Heating | € 0,45 |
| Coffee/tea | € 0,95 |
| Toilet paper | € 0,05 |
| Total | € 2,00 |
Limited deductible expenses
For both income and corporate tax purposes, the following costs may not be fully deducted from profits:
- food, drink and stimulants;
- representation;
- conferences, seminars, symposia, excursions, study tours and the like.
The amount included in the home working allowance for coffee/tea (€0.95) naturally falls into the category of food, beverages and stimulants. This part of the targeted allowance is therefore deductible:
- In income tax: for 80%;
- in corporation tax: for 73.5%.
These percentages apply when the entrepreneur chooses to base the deduction on actual expenses in the tax return. Indeed, the main rule is that limited deductible expenses are lump sum adjusted to the profit. The flat-rate addition to the profit is:
- For income tax purposes: €4,700;
- for corporation tax: the higher of €4,700 or 0.4% of the wage bill.