Employer’s own costs are costs incurred by the employee in the exercise of the employment contract which should in principle be borne by the employer.
These include internet connection costs at the employee’s home, representation costs and office costs at the employee’s home.
In order to facilitate this reimbursement system, it is accepted that a monthly flat rate is determined on the basis of sound and consistent standards. The lump sums can vary between approximately EUR 20.00 and EUR 200.00 per month.
If the formal requirements are met and the lump sums follow the recommendations of the tax authorities and the NSSO, the lump sum reimbursement of the employer’s own expenses is fully exempt from tax and social security.
