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04Apr

Finally a legal framework for private computers given to employees by their employers

 

Context

As mentioned in previous PTX headlines (*), there was a need for clarification of the tax consequences for the employer and the employees of private PC (personal computers) purchase programs.

The legal framework was set up by Art. 396 of the Program Law of 24 December 2002 (Official Gazette of 31 December 2002), introducing a new point 17 in Art 38 al. 1 of the Income Tax Code. The practical details however had still to be defined by Royal Decree.

News

These practical details were published today in the Official Gazette (**). These measures are applicable as from 1 January 2003.

The employer’s intervention in the purchase of a complete PC with accessories, (business) software and an Internet connection will be considered not taxable for the employee and deductible for the employer.

The employer’s participation is subject to the following conditions:

- it may amount to maximum 60% of the purchase price (ex-VAT) or to EUR 1.250 maximum (EUR 1.500 for income year 2003)
- it concerns new material only
- the employer’s intervention offer must be specified in a “Private PC Plan” document, with detailed list and specifications of the material and accessories
- the PC purchase plan must be available for every employee in the company
- the employee may choose to buy part of or the totality of the described material, (with a minimum of two items chosen from the offer)
- the employer’s intervention must be specified for each element of the offer
- the employee will be authorized to buy the same element(s) again only after 3 years
- the employer’s intervention will only occur with a certified copy or proof of purchase from the employee
- the employer may never have ownership of the material

Please note however that the specific social security treatment of such private PC plans is uncertain. From contacts with the social security authorities, we learned that a Royal Decree is likely to clarify this social security treatment soon.

For PC’s put at the disposal of employees instead of bought by them, the Royal Decree provides a lump-sum benefit in kind of EUR 180 per year for PC and accessories and of EUR 60 per year for an Internet connexion provided by the employer.

(*) http://news.hrservices.be?200210291816
(**) http://news.hrservices.be?lk200304041

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Posted: April 4th, 2003