What is the tax-free Internet allowance?

What tax regulations apply to the tax-free Internet allowance?

For which costs can the internet allowance be granted?

Can I offer other benefits in addition to the tax-free Internet allowance?

How can I adjust the amount for an employee's “Internet flat rate” benefit?

Do employees have to submit receipts for their internet costs?

How is the internet allowance integrated into payroll accounting?

Which employees are eligible for the Internet allowance?

How do you as an employer benefit from the tax-free internet allowance?

What is the tax-free Internet allowance?

The tax-free Internet allowance offers your employees an extra monthly salary by providing financial support for their Internet costs at home. Up to a monthly limit of EUR 50, the reimbursement of costs is taxed at a flat rate of just 25% and remains completely tax-free for your employees. This means that employees can benefit from a salary increase of up to EUR 50 per month / EUR 600 per year net, while your company saves on non-wage labor costs at the same time.

What tax regulations apply to the tax-free Internet allowance?

You can grant your employees a monthly internet allowance of up to 50 euros per month / 600 euros per year.

The following rules apply to the 50 euro internet allowance:

• You can tax your employees' internet costs at a flat rate of 25% up to a monthly allowance of 50 euros or 600 euros per year. In addition, church tax and the solidarity surcharge must be paid, while social security contributions do not apply.
• Internet costs are reimbursed in addition to the salary.
• In addition to the reimbursement of ongoing costs, you can also reimburse one-off costs up to the actual amount of the expenses. This means that amounts over 50 euros can also be reimbursed. For this purpose, your employees must provide individual proof of the costs.
• The costs can only be taxed at a flat rate up to the amount actually incurred.
• The internet allowance can only be granted if the costs for the internet connection are borne by the employee themselves and not by other persons.
• Your employees do not have to pay tax or social security contributions for the allowance.

You can find more information on the internet allowance here:

• Flat-rate taxation of internet allowances: § 40 Absatz 2 Satz 1 Nummer 5 Satz 2 EstG
• Flat-rate taxation of internet and data processing equipment: R 40.2 Abs. 5 LStR
• Flat-rate reimbursement of expenses: R 3.50 Abs. 2 Sätze 1 bis 2 + 5 bis 7 LStR

For which costs can the internet allowance be granted?

The internet allowance can be granted both for ongoing internet costs and for additional costs incurred. However, it should be noted that the 50 euro Internet allowance can only be granted for ongoing Internet costs, such as flat-rate charges for the Internet connection. One-off costs, such as repairs, cannot be included in the monthly flat rate.

The Internet allowance can be granted for the following expenses (private and professional):

• Set-up costs for an Internet connection
• Connection fees
• Basic fee for the Internet connection
• Flat rate fees for the Internet connection
• Costs for the router
• Costs for the modem
• Replacement of technical devices
• repairs
• and more

You also have the alternative option of taking out an Internet contract directly for your employees' homes.

Can I offer other benefits in addition to the tax-free Internet allowance?

Yes, you can offer other benefits in addition to the tax-free Internet allowance. As the internet allowance does not fall under the 50 euro benefit in kind, it can also be offered in addition to the benefit in kind. However, you can also offer benefits such as the meal allowance or the mobility budget in addition to the tax-free internet allowance. With Probonio, many other benefits can be integrated easily and free of charge.

The advantage:

• Simple view and administration of all benefits
• Employees have access to all benefits in one app
• The financial advantage of all benefits is visualized for employees

If you have any questions, please contact us at any time or simply speak to your personal contact person about the desired integration.

How can I adjust the amount for an employee's “Internet flat rate” benefit?

To adjust the amount for an employee's “Internet flat rate” benefit, follow these steps:

1. Select “Benefit Internet flat rate” in the left-hand column.
2. Click on “Employees” in the submenu.
3. Locate the “Benefit active” column and tick the relevant employee's e-mail address.
4. Click on the “Change configuration for employees” button at the top right.
5. Select the “Change options” tab and enter the new desired amount.
6. Click on the “Save” button to save the changes.

Do employees have to submit receipts for their internet costs?

Yes, employees must complete a document created by us once a year and confirm their internet costs. If there is a tax audit in the company, the original invoice may be requested.

If the internet costs change, they must also be corrected independently.

How is the internet allowance integrated into payroll accounting?

The internet allowance is managed as a separate item in payroll accounting and treated in accordance with the tax guidelines.

To do this, set up our payroll data export in the employer portal to transfer the data to your payroll office without any effort.

Which employees are eligible for the Internet allowance?

In principle, all employees can use the 50 euro Internet allowance, regardless of whether and how often they work from home or on site.

The benefit in kind can be used for any employee, i.e. full-time employees, part-time employees, working students, trainees and mini-jobbers. Business partners are not included here.

How do you as an employer benefit from the tax-free internet allowance?

As you only have to pay tax at a flat rate of 25% on the 50 euro internet allowance, you save on wage costs compared to a conventional salary increase. In addition, the Internet allowance is a simple and cost-effective way of increasing job satisfaction and employee loyalty and boosting employee motivation.

Translation Note: This article has been translated using automatic translation software to provide the reader with a basic understanding of the content. Despite reasonable efforts to provide an accurate translation, we cannot guarantee its accuracy.

If there are any questions regarding the accuracy of the information in the translated article, please refer to the German version of the article, which is the official version.