Tax exemption for telework expenses

Key aspects

Ordinance 292-A/2023 (the “Ordinance”) of September 29 sets the highest amount employees can be compensated for telework-related expenses without the compensation being considered as income for tax or social security purposes.

The compensation set for daily expenses is €22 per month (€1 for each full day of remote work) and can increase up to 50% (up to €33 per month) if this amount is established in a collective bargaining agreement (“CBA”).

For tax purposes, the compensation is considered an expense for the employer and does not constitute earnings for the employee.

The Ordinance entered into force on October 1, 2023.