Under pressure, everything becomes liquid. Even the Tax and Customs Administration’s positions. Although they do remain a bit viscous. We have our factsheet Costs of a home office and expenses incurred whilst working from home supplemented.
Essential
The Tax and Customs Administration took the strict view that a benefit provided by an employer to an employee is not (sufficiently) necessary if the employee contributes towards the costs of that benefit. This contribution usually takes the form of a payment for the employee’s private use of the benefit.
Employers may reimburse or provide the following items to their employees on a tax-free basis, but only if such items are reasonably necessary for the performance of their duties:
- tools;
- computers;
- mobile communication devices;
- and similar equipment.
Internet subscription
The data transmission associated with the equipment (put simply: the internet subscription) and the necessary software may also be reimbursed or provided tax-free under this scheme. And, as regards the internet subscription, this is now permitted even if the employee pays a personal contribution for private use. The Tax and Customs Administration states on its website that this will be included in the second edition of the Payroll Tax Handbook 2021.
This slightly more flexible stance is undoubtedly a result of the coronavirus crisis, which has led to employees working from home on a large scale. Knowing the Tax and Customs Administration, however, this relaxation remains strictly limited to internet subscriptions.