New valuation of certain benefits in kind such as laptop, tablet, mobile phone and smartphone
24 November 2017
If you provide to your employee a laptop, tablet, mobile phone or smartphone, which may also be used for private purposes, social security contributions and withholding tax will be due on the benefit in kind granted.
As from the 1st of January 2018 new valuations will have to be taken into account, both for tax as social security contributions In most cases, there will be a decrease in value. However, it may vary from case to case.
The valuation of the benefits have been modified due the to the decrease of the market price of the devices. Clear rules have been established for the valuation of tablets and mobile phones, which was a previous gap in Belgian tax law. The new regulation, therefore, aims to modernize and to reflect more accurately the actual benefit received.
Overview of the fixed amounts
Calculation total benefit in kind
A new element is that some benefits have to be bundled. For instance, when a mobile phone is provided, a benefit of 36 EUR/year or 3 EUR/month will have to be taken into account. If, in addition, a telephone subscription is provided, the total benefit will be 84 EUR/year or 7 EUR/month. If this subscription also includes mobile data, the total benefit will be 144 EUR/year or 12 EUR/month.
The current regulation (in force before 1 January 2018) stipulates an NSSO value of 150 EUR/year or 12,50 EUR/month when a mobile phone was provided, irrespective of whether a telephone subscription and/or mobile data was included or not.
Fixed amount per device
The new regulation introduces two fixed amounts: 72 EUR/year and 36 EUR/year for each device put at the disposal of the employee. When both a laptop and a tablet are provided, the total benefit will, therefore, be 108 EUR/year, or 72 EUR + 36 EUR.
The current regulation only takes one benefit into account when both a laptop as a tablet were provided, i.e. 180 EUR/year.
The benefit in kind of free internet will, however, remain 60 EUR/year, regardless of the number of devices that will use the subscription.
We would be pleased to advise you on this matter. Do not hesitate to contact us if you provide one of the above-mentioned benefits to your staff: