• Insights

Private Use of a Mobile Phone – Still No Flat-Rate Assessment

Written by
Claeys & Engels offers reassurance in the full range of human resources matters and fast, efficient and pragmatic legal advice.
Read about the private use of mobile phones under Belgian employment law

The benefit a worker derives from his/her private use of a company phone constitutes a remuneration benefit and is subject to social security (NOSS) contributions and tax.

In practice, the question which arises is how can a monetary value be assigned to this benefit?

At the end of 2009 there was a lot of discussion about a draft Royal Decree which would have fixed the value of this benefit at a flat 12,50 EUR per month.

The Council of Ministers has now decided to shelve this proposal indefinitely.

Though the issue of assessing the value of this benefit at a flat rate has now been put aside, as for the rest, there is no change.

As a result, except if the worker pays for the private use (for example, via a split billing), the principles remain unchanged, i.e., private use of a company mobile phone gives rise to  liability for social security and tax. . This advantage has to be assessed at its real value. The real value is determined in particular in function of the price of the telephone, of the value of the line rental and of the proportion of professional use.

However, in practice, in view of the obvious difficulties of assessment, it can be expected that the tax administration and the NOSS will continue to accept that this benefit is valued at between 12 and 15 EUR per month.

Related Insights

Recent developments in ESG and pensions
European Union
Tax incentives for ESG