Tax-free allowances when working from home
When an employee incurs costs while working from home, they are entitled to a tax-free allowance which varies depending on how many days they work from home a week. For example, an employee working remotely once a week is entitled to € 10 per month, but if they worked remotely twice a week the allowance increases to € 20. If the sum paid exceeds this limit, it may still be exempt from tax, provided that the professional expenses incurred by the employee can be justified.
Employers are generally responsible for the costs of supplying, installing, and maintaining the equipment necessary for employees who work from home regularly, however, employees may instead opt to use their equipment.
If the employee works from home regularly, the employer must cover the costs they incurred due to their work (especially those related to communications). The employer must also provide the employee with a technical support service, and is responsible for expenses stemming from loss/damage of equipment and data.
For fixed costs such as rent, housing tax, land tax, regional/departmental/municipal tax, condominium fees, or multi-risk home insurance, the share of all the costs incurred is multiplied by the surface area of the home dedicated to working divided by the total surface area of the home. For example, if the total costs incurred amounts to €420, and the employee uses 10m² of his 70m² home for work, the calculation is 420 x 10 / 70 = €60. So €60 is the amount the employer can reimburse the employee tax-free.
For variable costs such as heating, air conditioning, or electricity, the share of the actual costs incurred is multiplied by the surface area of the part of the home used for working (for this calculation the total surface area of the home is not used).
- Consumables such as printer ink and reams of paper can be reimbursed tax-free on proof of expenses incurred;
- Telephone and internet costs can be reimbursed tax-free with proof of expenses incurred;
- An employee acquiring furniture on behalf of the company to be used and kept by themselves can be reimbursed up to 50% if supporting documents can be given;
- Costs relating to adapting or modifying the working area (for example, installing electrical sockets) can be reimbursed tax-free with proof of an invoice;
- An employee purchasing computer equipment and peripherals (such as a printer) on behalf of the company to be used and kept by themselves can be reimbursed up to 50% if supporting documents can be given.