Company-provided accommodation – New practice note


Where immovable property is (fully or partly) put at the disposal of an employee or company director by an employer/company free of charge, the individual is deemed to be in receipt of a taxable benefit in kind. This benefit is generally determined on a lump sum basis, taking into account the deemed rental income.

Clarification in the practice note of 02 April 2014

If the occupation of a property is ‘imposed’ on the employee/company director and the property exceeds the personal needs of the individual, the deemed rental income will only be taken into account to the extent that the property meets the actual needs of the beneficiary. The ambiguity that had arisen around this wording was finally cleared up following a parliamentary question. The practice note of 02 April 2014 now explicitly clarifies the meaning of the wording ‘when the occupation of a property is imposed’ and ‘when it exceeds the personal needs’.