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04May

Finally a legal social security framework for private computers provided to employees by their employers

 

Context

As you may recall, the tax treatment of private PC (personal computer) purchase programs was set up by Art. 396 of the Program Law of 24 December 2002 (Official Gazette of 31 December 2002). The practical details were implemented by Royal Decree on 25 March 2003 (Official Gazette of 4 April 2003) (**).

News

More than one year later, the social security treatment of such private PC plans was published on 30 April 2004 in the Official Gazette (*). As for the tax treatment, these measures are applicable as from 1 January 2003.

The social security treatment follows the tax treatment. The employer’s intervention in the purchase of a complete PC with accessories, (business) software and an Internet connection will be considered not subject to either employer or employee social security contributions.

As a reminder, 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
- 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

For PC’s put at the disposal of employees instead of bought by them, the Royal Decree also refers to the tax legislation and 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?lk200405041
(**) http://news.hrservices.be?lk200304041

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Posted: May 4th, 2004