- 29 Apr 2015
The National Social Security Office (NSSO) no longer equates a tablet with a PC when it comes to the valuation of the benefit subject to social security contributions.
When a tablet and a PC are provided to one and the same employee for combined private and professional use, the benefit should from now on be limited to 15 EUR per month. When only a tablet is provided, the actual value of the benefit should be taken into account and not the standard value determined for a PC.
The NSSO traditionally equates the benefit subject to social security contributions in case an employee can use both a tablet and a PC. This is a standard amount of 15 EUR per month for the device and 5 EUR per month for the connection and subscription to the internet, regardless the actual values of these benefits.
Since an employee, who can use both a PC and a tablet, can only use one of these devices at the same time, the NSSO has now eased its position. The NSSO has stated that from now on, when an employer provides an employee with both a PC and a tablet, the benefit should be limited to 15 EUR per month for both devices. Thus no separate benefit should be charged any more for the PC and the tablet.
Furthermore, if only a tablet is made available to the employee, the actual value should be taken into account for the valuation of the benefit. To calculate the actual value of the tablet, the following formula should be used: (price in EUR x %private use) / 36 (depreciation period in months). This valuation is generally more favourable than the statutory standard value for a PC.
When the actual value was already considered by the Tax Ruling Committee, every benefit should still be computed separately at tax level. So it is to be hoped, in order to ensure compliance in this area, that the tax administration will align itself with the NSSO.
> Action point
Verify which devices are provided to employees and, where appropriate, adapt the value of the benefit in kind subject to social security contributions.