Stricter fiscal checks on employee mobiles
The Federal Government has announced that the Belgian Taxation Service is to tighten its check on the use of company mobile phones.
Hundreds of thousands of Belgians have a mobile phone that is provided by their employer.
The employer pays the monthly standing charge as well as some or all of the cost of the calls made, including personal calls that having nothing to do with work.
The new rules are clear; tax and social security contributions must be paid on private calls that are paid for an employer on behalf of his/her employee.
However, in many companies no distinction is made between professional and private calls.
A company mobile phone that may be used for private ends is a classed as a perk.
The legislation on perks clearly states that social security contributions should be paid on all perks that are given to employees on top of their regular salary.
Some companies already make a distinction between personal and private use of company mobiles.
For example, they provide their employees with a fixed monthly sum of credit on their mobile phone.
The employee is responsible for the payment of any call charges in excess of this fixed sum.
If a company is unable to give clarity about it employees’ mobile phone use, the Taxation Service will assume that the employee has made 150 euros a year’s worth of personal calls on his/her company mobile.
The new rules will come into force from 1 April next year.