Employer-paid telephone systems and high speed online are subject to taxes as 100 % free cellphone by 2,600 DKK per season (2015). An employer- compensated information interaction relationship which gives the worker accessibility the employer’s system shall, however, not be subject to taxes. A pc with conventional devices created available for the purpose of perform is not to be subject to taxes – neither in situation of personal use.
1.1 Decrease of total salary
As a consequence of the new antiavoidance concept, it is as of 1 Jan 2012 no longer attractive from a tax point of view to enter into an contract about pc systems such as conventional devices as a versatile advantage, significance funded through loss of total wage, see area 3.3.
It is still possible to offer and finance telephone systems, OUKITEL K4000 mobile phones and online as versatile advantages via loss of total wage. If a cell cellphone is funded by loss of total wage, it will presumably also be used for personal reasons and therefore not be composed by taxes of 100 % free cellphone.
1.2 Who are covered by the rules
The guidelines comprise individuals who as aspect of an career or as aspect of an contract about perform performed in other respects are provided with telephone systems, high speed online or a telephone/device. The guidelines also apply to self-employed individuals and members/assistants of boards, committees, commissions, councils etc. and others who receive fees or advantages and have IT devices at their convenience.
Both spouses/cohabitants of a family are subject to taxes of 100 % free cellphone by 2,600 DKK each per season, if each one of them has telephone systems or a information interaction relationship at their convenience by their company. However, a special tax comfort for partners is provided, see area 4.2.
As under the past multi-media tax guidelines overdue selected board members and non-reflex overdue staff who have IT devices at their convenience in relationship with their perform are excepted from the concept, see Section 7 M of the Danish Withholding Tax Act (ligningsloven). Individuals assisting with non-reflex activities in tax-free associations are still regarded overdue, even though they have telephone systems and high speed online at their convenience in relationship with their perform, and they are not to pay tax of the accessibility to these advantages.
2. Free telephone
2.1 Telephony
In addition to ordinary fixed-line telephone systems and cellular phone; starting, registration and intake costs such as regular VKworld VK700 Pro cellphone solutions are composed. The telephone/appliance itself, no matter whether it is a fixed-line cellphone or a cell cellphone, is also composed.
The concept of cellphone also consists of small, hand-held pc systems such as PDA’s, mobile mobile phones and the like, the main operate of which is telephone systems and perhaps schedule and time review operate.
The main operate of the devices decides whether it shall be regarded a pc or a cellphone. The exercise from the multi-media tax is continued, and tablets are thus regarded pc systems and mobile mobile phones are regarded mobile phones, regardless whether they are linked to information interaction.
The taxes also consists of information interaction (broadband connections) such as registration and intake costs for interaction through a web based connection and one-off costs for starting the world wide web connection.
Usual solutions that are aspect of the registration and other solutions that are a aspect of a web based registration and that cannot be divided are also composed. Unusual additional solutions are not composed just because they are incorporated and cannot be divided.
Only telephone systems and high speed online created available to the worker are composed by taxes of 100 % free cellphone. Other individuals in the employee’s family are, however, permitted to using the OUKITEL K4000 cellphone and high speed online relationship.
Taxation of 100 % free cellphone implies that the worker has a fully or partly employer- compensated cellphone at his/her convenience. The possibility of personal use triggers taxes.
If the worker has a cellphone at his/her convenience at his/her personal address, personal disposal/use is believed, and an employer-paid fixed-line cellphone will always be taxed. A VKworld VK700 Pro cellphone, which is brought house, will usually also be taxed.
2.2 Mobile telephone systems – without taxation
It is accepted that the worker can make isolated, personal calls from an employer- compensated work-related cell cellphone without it leading to taxes, if the cellphone is only used for business reasons. It is major that the worker does not use the cell cellphone in such a way that it actually replaces a personal cellphone, but only is used in close relation to the employee’s perform.
If taxes is to be avoided, an contract about the employee’s use of his/her work-related cell cellphone must be created by the worker signing a solemn declaration, and the company must have procedures for controlling the employee’s use.
The past tight requirements for management applying in relationship with the multi-media taxes have been eased. The company must now in concept only management that the worker keeps the contract.
It will be sufficient if the company plans the management, so that only employees who deviate from the regular call pattern will be subject to individual management. For example if the worker has a considerable increase in costs or intake – without work-related reason or it can be registered that payment of personal costs is created via the work-related cell cellphone.
2.3 Data interaction – without taxation
An employer-paid information interaction relationship will not be subject to taxes, if the relationship gives the worker accessibility the employer’s system. The tax exception to this rule is conditioned on the worker having accessibility the same features and records as he/she has at his/her office.
This does not mean that the worker must in every respect have accessibility exactly the same functions/documents as at the office. However, it is not sufficient that the worker only has accessibility e.g. mails, schedule and the company’s website.
Access to the employer’s system must be understood in wide terms and also consists of a relationship that through various solutions gives accessibility external servers to which the company has bought accessibility.
The technical solution chosen is not major. The relationship might be ISDN, ADSL or other online connection such as special high speed online relationships. Employer- compensated information interaction consists of registration and intake costs such as initial costs.
The fact that the information interaction relationship can also be used or is used for telephone systems does not change the tax exception to this rule, if the relationship is a aspect of the interaction relationship, and which cannot be divided by a individual value. Use of IP telephone systems through such a relationship does not trigger taxes.
The tax exception to this rule only consists of high speed online relationships with the regular and incorporated, additional solutions without individual value, i.e. “free” solutions. On the basis of current exercise this implies in our opinion that combined solutions with wide band and telephony/television signal and other solutions are not directly composed.
Cf. newest exercise, high speed online relationship with online accessibility is still regarded taxfree, regardless that the high speed online relationship also has a fixedline cellphone registration, if costs for telephone systems (calls etc.) are invoiced the worker independently and for personal reasons. A high speed online relationship (with online access) is, however, not regarded tax-free, if it has a fixedline, flat rate OUKITEL K4000 cellphone registration, and the expense for the total registration is invoiced the company and compensated by the company.
If there is no accessibility the employer’s system or the necessary features, the worker must be subject to taxes of 100 % free cellphone, see above.
3. Computers etc.
3.1 Work computers
If the company makes a pc with conventional devices available for business reasons, the personal use will not be subject to taxes. Now it is again possible for the worker to get his/her work-related pc or set up a house company – without the provision leading to taxes.
A pc consists of both static pc systems and laptops for work-related use. With reference to the exercise prevailing before the multi-media taxes, very little is needed to fulfil the requirement for a work-related need for a pc with conventional devices – and this exercise will probably continue.
Only pc systems with conventional devices to be used for perform are composed by tax exception to this rule and not the conventional devices alone. In addition only pc systems with conventional devices created available to the worker are composed by tax exception to this rule. Other individuals of the employee’s family are, however, permitted to using the devices.
3.2 Standard equipment
By conventional devices is meant devices for a pc such as display, software, printer etc. of normal size and conventional. The National Evaluation Council has, see newest exercise, maintained that for example a 26-inch display is regarded conventional devices, whereas a 32-inch display cannot be regarded conventional devices.
Equipment that cannot be regarded conventional must be subject to taxes independently. Computers with conventional devices that are only for personal use and for which there is no work-related justification and devices that is created available for the other individuals of the family for personal use must be subject to taxes according to the common guidelines of advantages, i.e. at market value.
3.3 Anti-avoidance rule
As of 1 Jan 2012 taxes pc systems with conventional devices has been reintroduced and tax will be activated, if a pay cut, pay discipline or reduced wage than the worker would have obtained, in situation no pc or devices had been created available, has been agreed upon between the company and the worker.
If the worker accepts a reduced wage in order to have a pc at his/her convenience, it is believed that the pc is mainly created available for personal reasons. In such cases the worker must be subject to taxes of an quantity corresponding to 50% of the initial price for the pc such as devices for each season that the pc is available. If the pc has only been available for the worker aspect of the season, the taxes will be activated proportionally each month.
3.4 Adjusting rule
Computers with conventional devices where a binding contract about loss of total wage (pay cut) has been concluded before the 31 December 2011 and where the pc is supplied before the 1 March 2013 is not composed by the anti-avoidance concept.
Such pc such as devices must – see the transitional concept – be subject to taxes according to the guidelines of 100 % free cellphone by a value of 2,600 DKK per season – effective up to and such as the earnings season 2014 – but only as long as the contract on loss of total wage is valid.
4. Taxation
4.1 Free telephone
Free cellphone is subject to taxes by a set quantity of 2,600 DKK per season (for 2015), regardless whether the actual costs, compensated by the company, are reduced or higher. It is not possible to reduce the quantity by setting it off against the household’s other costs.
It is not important whether the registration has been taken out in the employer’s or the employee’s name; however it affects any VAT deduction, if the invoice is not addressed to the company. The company can as so far also cover the costs for VKworld VK700 Pro cellphone and high speed online up to a certain quantity (free cellphone with a limit).
Cash contributions/reimbursements (which are not refund of documented costs according to vouchers submitted) are not composed by taxes of 100 % free cellphone and must – as so far – be treated as wage (A-income/income subject to taxes at source).
The quantity of 2,600 DKK is applicable to each worker and not per family, significance that both partners must be subject to taxes, if each one of them has obtained either telephone systems or online from their respective company.
One person can highest possible be subject to taxes of 2,600 DKK per season – regardless whether he/she has both telephony/broadband at his/her convenience, perhaps from more than one company at the same time and regardless whether taxes is activated according to the transitional concept for pc systems funded by loss of total wage.
4.2 Tax comfort for spouses
Tax comfort for partners (which was introduced in relationship with the multi-media tax) still is applicable. This indicates that if both partners are liable to pay tax of 100 % free cellphone, they will have a tax comfort of 25% each, when the tax is minimum 3,500 DKK per season in total for both partners. This indicates that taxes must be withheld for at least 17 months (3,683 DKK) to obtain the tax comfort. The tax comfort is only provided, if the partners are cohabitants at the end of the season.
4.3 Taxation of other benefits
Expenses for donations to charity collections or other personal costs charged via the cellphone bill are not composed by taxes of 100 % free cellphone and must be subject to taxes independently.
Computers such as conventional devices that are not to be used for perform, and OUKITEL K4000 mobile phones that are created available to for example children must be subject to taxes independently as a advantage, i.e. the company is required to review the advantage to the tax regulators according to the common guidelines.
4.4 Several advantages of the same category
The company must in concept only make one 100 % free cellphone and/or online connection available for the worker, unless it is validated for (work) reasons that the worker needs several mobile phones or online relationships. This might for example be, if the worker has more than one residence at his/her convenience or the use of the cellphone is limited.
The company can – without taxes – make pc systems such as conventional devices available to the worker for work-related reasons. This indicates that also in this situation it must be validated by concrete and actual work-related reasons.
This limitation of the number of advantages of the same classification is a continuation of the exercise that applied for the multi-media taxes.
4.5 Reporting
If an worker has telephone systems or high speed online available from several employers, each company is – regardless of the employee’s other career conditions – required to review the advantages to the tax regulators. However, the person must for the season only be subject to taxes of 100 % free cellphone once.
Any correction (maximum once) to the reported quantity is created automatically by the tax regulators on the annual tax assessment – in the same way as for the tax comfort for partners.
