Circula's Internet Benefit allows you to benefit from a tax-free subsidy of up to €50 per month for your Internet connection.
How does the Internet Benefit work?
Circula provides your employer with a contract. Once you've signed it, you can submit your internet charges once in the mobile app. After that, you will receive your reimbursement automatically every month.
How to get started?
To take advantage of Circula Benefits, please contact your Human Resources Manager.
How do I submit the cost of my Internet connection?
You sign the statement of your costs that Circula provides you with in advance and give it to your employer.
The employers activate the Internet Benefit for the employees.
The benefit user opens the Circula app, selects the Internet Benefit, and enters the amount of the Internet costs once.
In each of the following months, the amount is automatically refunded to the user.
Only costs that are actually incurred as a result of Internet use may be submitted.
If the monthly Internet costs should change, the new amount needs to be updated in the Circula App right away.
No receipt is required to claim Internet costs. The statement signed by the employee before claiming this benefit is sufficient.
This employee benefit is taxed at a flat rate at Circula.
If employees make false statements about the actual Internet costs, they are liable for this. This means taxes and social security contributions are to be borne by the employee in case of false declarations.
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 me as an employee?
No, the costs of using Circula are covered by your company. 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.
Do you still have questions?
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