Compensation allowance for working from home in Belgium

Now that homeworking will be part of our professional life after the corona crisis, the Belgian tax authorities have issued a circular outlining an allowance which an employer can grant to employees that is free from tax and social security contributions.

The new circular, applicable from 01 March 2021, defines homeworking as working at least one day per week from home (or the equivalent of one day a week, e.g. two half-days, or a number of hours per day).

As mentioned in our previous insight Compensation for working from home, an employer can reimburse certain home office costs to employees who work regularly from home on a monthly basis, of up to 129.48 EUR per month.

The authorities have provided a non-exhaustive list of costs to be covered by the  allowance (currently 129.48 EUR per month, increasing to 144.31 EUR per month during the second quarter of 2021):

• use of space at the employee's home for office work (including rent and any depreciation of the space);
• printer and computer consumables (this does not mean the printer and computer themselves but paper, USB sticks, mouse pad, ink, etc.);
• office supplies (folders, notepads, pens, etc.);
• utilities such as water, electricity and heating;
• maintenance;
• insurance;
• property tax; or
• coffee, water and snacks, etc.

In addition, the authorities have decided that this monthly allowance can be combined with the use of furniture and IT equipment provided by the employer. Furniture and IT equipment must be provided by the employer is not therefore covered by the allowance.

In this regard the following exhaustive list of costs that not to be covered by the monthly office allowance is provided:

• office chair, office desk, desk cupboard, functional desk lamp;
• a second computer screen;
• printer/scanner;
• keyboard;
• mouse, foot mouse, trackpad or trackball;
• headphones; or
• specific equipment needed by persons with disabilities to work smoothly with the computer.

The authorities accept that any reimbursement of the above office furniture/IT equipment is considered to be separate reimbursement of the employer's expenses and not to be deducted from the monthly  allowance, (provided that employees have evidence of the costs and  these costs relate to  items that are necessary to be able to carry out the professional activity at home in a normal way). Also, in regard to these expenses, normal depreciation of these goods will be assumed (e.g. office chair 10 years, desk chair 10 years, etc.) and may not be replaced prior to this.

Action point: We strongly recommend Belgian employers evaluate current practice and policies regarding the reimbursement of home office expenses and our employment team are able to discuss this with you further.

See our coronavirus (COVID-19) feature for more information generally on the possible legal implications of COVID-19.