Telework: tax exemptions for business expenses incurred in 2021

Allowances for teleworking from home paid by the employer may take the form of allowances, lump-sum reimbursements or reimbursement of actual costs.

What are the deductible telework costs?

Deductible expenses include:

• communication costs (subscription, subscription to an internet offer, etc.);
• costs of supplies and printed matter (expenditure on ink cartridges, paper pallets);
• costs related to the use of a private premises (electricity, water, heating, home insurance, electrical compliance diagnosis...);
• travel expenses between home and workplace, with justification of the need for travel between home and workplace;
• mobile phone charges (charges for subscribing, communicating and acquiring mobile phones);
• purchase of furniture and computer equipment for business purposes.

The deduction for telework business expenses is different depending on whether or not you opt for actual expenses and whether or not an allowance covering telework home expenses is paid by your employer.

You have incurred telework costs and have not received an allowance from your employer

If you do not choose to deduct actual expenses, you receive a lump-sum allowance of 10%, calculated automatically on the amounts you declare in salaries and wages.

If you choose to deduct actual expenses, professional expenses connected with teleworking from home shall be exempted up to €2.5 per day of telework, i.e. €55 maximum per month and up to annual €580. You can also deduct telework costs for the exact amount if this is more favorable.

If you choose to deduct actual expenses, you can deduct all your business expenses (whether or not they are related to telework) from your income tax, but you must be able to justify them.

You have incurred telework costs and received allowances from your employer

If you do not choose to deduct actual expensesHowever, allowances paid by the employer to cover teleworking costs (allowances, lump-sum reimbursements or reimbursement of actual costs) are exempt from income tax. You don't have to declare them.

In this case, you receive a lump-sum allowance of 10%, calculated automatically on the amounts you declare in salaries and wages.

If you choose to deduct actual expensesHowever, allowances paid by the employer are exempt from income tax. You don't have to declare them.

You will not be able to deduct your telework expenses at home, but you can deduct your other actual expenses (business, non-telework).

However, you can deduct your telework expenses, especially if the amount is higher than the employer's allowances. In this case, the benefits received are taxable and you must declare them, reintegrating them into your salaries and wages. The professional costs connected with teleworking are then exempted up to €2.5 per day of telework, i.e. €55 for a month comprising 20 days of telework, within the annual limit of €580.