Mobile phone, notebook and other assets used for private purposes

When company’s assets are used by the employees for private purposes, the employer may include the costs for acquisition, technical improvement, operation, repairs, and maintenance of these assets in the tax-deductible expenses in an actual demonstrable amount corresponding to their usage for business purposes or in the form of lump-sum expenses of 80%.

The above-mentioned conditions do not apply to expenses that have been provided by employer to his employees as a fringe benefit agreed in an employment, collective or other similar agreement. If the provision of a notebook and mobile phone for private purposes is agreed, for example, in an employment contract and this benefit is taxed to the employee as an employment income by the employer, the employer may include the expenses related to acquisition of a notebook/mobile phone, monthly telecom charges and other related expenses into tax deductible costs in a full amount.

Should an employer decide to exempt the private use of such assets from the employee’s taxation, it can be done up to the amount of € 500 per year. However, in this case, the employer cannot claim expenses related to private use as tax deductible expense.