Even if an employee pays part of the costs of an internet subscription for working from home, this does not mean the subscription is not tax exempt by law, as was published on the website of the Belastingdienst (the Dutch revenue service).
By law, equipment necessary to perform one’s work, such as tools, computers, mobile means of communication, etc., are exempt from taxation. The same applies to the reimbursement, purchase or provision of a necessary internet subscription. Until recently, the subscription was only tax exempt if the employer paid the full costs. If the employee paid part of it, the subscription would no longer meet the applicable criteria to make it a necessity for work. However, the information on the website of the Belastingdienst now shows that this is no longer the case; which means that even if an employee pays part of the subscription, it is still exempt from taxation.
The adjustment has not yet been included in the first edition of the ‘Handboek Loonheffingen 2021’ (Manual of Payroll Tax 2021), which was recently published. The adjustment will be included in the second edition, however.