The employer’s reimbursement to a remotely working employee of the purchase costs of equipment necessary for remote work does not constitute the employee’s income.
Letter of the Director of National Fiscal Information dated January 25, 2021, file ref. 0115-KDIT1.4011.851.2020.1.KK.
Argument
In the opinion of the Director of the National Fiscal Information, the reimbursement of expenses incurred in connection with ensuring the possibility to work remotely does not generate income for the employee. The authority acknowledged that in this case the employee’s income does not arise at all.
In the opinion of the Director of the National Fiscal Information, in the case of employer’s employees who perform remote work due to the epidemic threat, the reimbursement of costs of purchase of equipment necessary for work will not result in the employee’s income being generated within the meaning of the Act on Personal Income Tax.
What is more, in the opinion of the Director of the National Fiscal Information, the employer as the payer will not be burdened with any obligations in respect of the payment of the above benefits which, as a rule, are imposed on payers.
The reimbursement of the remotely working employee by the employer of the costs incurred by this employee for electricity consumption and internet use does not constitute the employee’s income.
Letter of the Director of National Fiscal Information dated December 15, 2020, file ref. 0115-KDIT2.4011.739.2020.1.RS.
Argument
In the opinion of the Director of the National Fiscal Information, in the event that, due to the worsening epidemiological situation, the employer pays an equivalent for the use of private internet connection and increased consumption of electricity and heating by a remote employee working at the employer’s request, such benefit will not constitute the employee’s income.
Moreover, in the opinion of the Director of the National Fiscal Information, employees will not be obliged to present the employer with invoices from external Internet and electricity providers, as well as calculating the actual electricity consumption.
In the opinion of the Director of the National Fiscal Information, the above interpretation results from Article 3 section 1, paragraphs 3, 4 and 5 of the Act of March 2, 2020 on special solutions related to the prevention, counteracting and combating COVID-19, other infectious diseases and crisis situations caused by them (Journal of Laws of 2020, item 374).
It follows from the above provisions that the tools and materials needed to perform remote work and logistics support for remote work are to be provided by the employer. The employer is free as to how to provide the remotely working employee with the tools and materials needed to perform this work. This assurance may therefore be of a material nature, by equipping the workplace with tools and materials, as well as the payment of benefits for using the employee’s own materials and tools.
The reimbursement of the costs of purchasing office furniture to a remotely working employee by the employer does not constitute the employee’s income.
Letter of the Director of National Fiscal Information dated December 3, 2020, file ref. 0113-KDIPT2-3.4011.725.2020.2.KS.
Argument
In the opinion of the Director of the National Fiscal Information, the benefit received by an employee from an employer who instructed the employee to perform remote work in connection with COVID-19, consisting in the reimbursement by the employer of expenses incurred by the employee for the purchase of an office chair, will not constitute the employee’s income.
In the opinion of the Director of the National Fiscal Information, the above results from the act on counteracting the effects of COVID-19, according to which the employer may instruct the employee to perform remote work and is obliged to provide resources to perform this work.
It should be noted that in the opinion of the Director of the National Fiscal Information the above interpretation does not apply to teleworkers and employees working remotely.
In the case of teleworkers and employees working remotely, the Director of the National Fiscal Information decided that the above-mentioned reimbursement will constitute income of these employees, but this income may be reduced by the equivalent for using the equipment for business purposes.
dr hab. Konrad Marciniuk
Partner, Radca prawny
T: +48 22 447 43 00
M: +48 601 674 424
E: marciniuk@millercanfield.com
Disclaimer: This publication has been prepared for clients and professional associates of Miller Canfield, and is based on the facts and guidance available at the time of its release which may be subject to change. The purpose of the publication is to draw attention to the legal events indicated in it and should not be the sole basis for any decision regarding a particular course of action; nor should it be relied on as legal advice or regarded as a substitute for detailed advice in individual cases. The services of a competent professional adviser should be obtained in each instance so that the applicability of the relevant legislation or other legal development to the particular facts can be verified.