At a glance
The internet benefit enables employees to receive a tax-free subsidy of up to €50 per month for their internet connection.
The subsidy is granted in addition to the wages owed anyway.
It is used via the Circula app without the need for an invoice.
The costs for the internet benefit are covered by the company.
How does the Internet Benefit work?
Circula provides your company with a contract attachment. Once you have signed it, you can submit your internet costs for one time only in the Circula app. You will then receive your reimbursement automatically every month.
How do I get started?
To begin using Circula Benefits, please contact your Human Resources Manager.
How do I submit the cost of my Internet connection?
Signing the contract attachment: You sign the attachment provided by Circula and hand it over to your employer.
Activation by the employer: Your company activates the internet benefit for you.
One-time submission of the costs: In the Circula app, you select the internet benefit and enter the amount of your internet costs once.
Automatic monthly reimbursement: The amount is automatically reimbursed to you in each subsequent month.
Rules for using the Internet Benefit
Only actual costs incurred through the use of the Internet may be submitted. The contract must be in your name.
If the monthly internet costs change, this must be updated immediately in the Circula app.
No receipt required: The employee's signed contract attachment is sufficient.
The internet benefit is taxed at a flat rate.
Incorrect information about the actual costs will result in liability on the part of the employee. In this case, taxes and social security contributions must be paid by the employee.
Frequently asked questions
What costs are covered by the Internet flat rate?
The costs incurred include the basic fees for Internet access (e.g. DSL or cable Internet contract).
Are there any costs for the employee?
No, the costs of using Circula are covered by the employer. For you as an employee, this only increases your net salary, because the benefit is completely tax and social-security-free.
Does this only apply to Internet costs incurred when working from a home office?
No, the internet allowance can be granted regardless of whether employees work from home or in the company office. It is also not a prerequisite that the private internet connection is used for business purposes at all. Employees can also use the Internet 100% privately.
What is the maximum monthly amount for the Internet allowance?
The monthly Internet allowance is limited to a maximum of €50.
What is the legal basis for Circula's internet allowance?
According to § 40 para. 2 no. 5 EStG, employers can reimburse their employees for Internet use:
"Notwithstanding paragraph 1, employers may levy wage tax at a flat rate of 25% insofar as data processing equipment is transferred to employees free of charge or at a reduced price in addition to the wages owed anyway; this also applies to accessories and Internet access. The same applies to subsidies paid by employers to cover the employees' expenses for Internet use in addition to the wages owed anyway."
Tip
For more information: BMF Official Wage Tax Handbook
Do you still have questions?
💬 Chat Support
📞 +49 30 588 491 01
✉️ support@circula.com