Benefits in kind: valuation of a tablet by social security and tax authorities

Do your employees have a tablet of the company which they can use for private purposes? Then social security contributions and withholding tax are due on this benefit in kind. The valuation of this benefit in kind by the social security and tax authorities is another story.

The tablet(pc) such as the iPad and eReader is a genuine personal computer, but in a smaller format. It is seen more often in professional life. When your employees have a tablet with or without internet connection which they can use for their private purposes, the social security and tax aspects of this benefit in kind should be considered.

Social

For the calculation of social security contributions benefits in kind are considered as income. The benefits in kind are estimated on their real value or the value is fixed as a lump sum on an annual basis (but it can be applied pro rata temporis).

The social security office now announces the official point of view that for the calculation of the benefit in kind for the private use of a tablet pc, it is to be considered as a pc. As it is the case for a pc, the benefit in kind is valued at 180€ per year when the employees can use the tablet also for their private purposes. Do you also pay for the internet connection and the internet subscription, than the additional benefit in kind is estimated at 60€ per year. If the employees have both a pc and a tablet, then the benefit in kind is valued at 180€ per apparatus or 480€ if both are connected to the internet.

Tax

The calculation of the taxable benefit in kind is not calculated in the same way as for social security purposes. The valuation of the benefit in kind is not made on a lump sum basis, but is valued on the basis of the real value in the hands of the employee. This is the normal price of the tablet and the relation between the professional and private use by your employee. Whether the tax authorities will apply a lump sum valuation in the future, is not sure, since it is not easy to determine the real value and the percentage or private use for each tablet.