All income that you receive from your employer is subject to income taxes. This is also the case for non-cash elements. In general, taxes should be paid on the actual value received by the employee, meaning the value that (s)he would have paid in case the employer wouldn’t intervene in such a cost. However, for some of these non-cash benefits, a Royal Decree foresees a lump sum amount to be used as taxable amount. This is also the case if the employer pays the employees’ or directors’ electricity and / or heating-bill.
For assessment year 2023 (income year 2022), the lump sum amounts are:
- Electricity: EUR 480 for employees and EUR 1.060 for company directors and management
- Heating: EUR 960 for employees and EUR 2.130 for company directors and management
As a reaction against the growing market practice of employers paying the electricity and heating bill while employees are being taxed on the lump sum amount, a modification of the Royal Decree has been introduced and now adds the condition that the lump sum valuation for the provision of electricity / heating by the employer is only possible in case the employer also puts the immovable property (apartment / house / … for which the electricity or heating is being paid) at the disposal of the employee.
The above mentioned change is already applicable since 1 January 2022.