The Income Tax Act (Einkommensteuergesetz) regulates in which cases employee benefits are tax-free. This also includes the employee’s benefits from the private use of company data processing and telecommunication devices and their accessories. This regulation was further specified by the Federal Fiscal Court (Bundesfinanzhof, BFH) in its judgement of 23 November 2022.

Tax exemption within the meaning of the Income Tax Act also includes where telephone costs are reimbursed by the employer and the employee originally concluded the mobile phone contract and the employer acquires the mobile phone at a discounted price from its employee in order to subsequently provide it to the employee for private use. If this tax exemption were not available, the employee would have to pay tax on the non-cash benefits arising from the use. However, in this context, the BFH also points out that, in contrast, a subsidy from the employer for a private telephone connection of the employee is not tax-exempt.

The legislation is intended to enable employers to allow their employees to use company equipment, such as computers or telecommunications equipment, for private purposes without making this more difficult due to the administrative burden associated with the recording of so-called non-cash remuneration for tax purposes.

If this article interests you, read also:
Provision of a company car where fuel consumption is estimated
Profits arising from the sale of cryptocurrencies are subject to tax
Basic rate of interest adjusted

Do you need support? Find out more about our tax consulting services.

If you have any questions, our consultants will be happy to help you.

No token or token has expired.