Home office – rate for tax-free expense allowance not subject to withholding tax

If an employee has a room in their home that is only being used as a home office, the employer can pay a tax-free home office allowance to the employee that is not subject to withholding tax. The combined use of a room in their home as an office and, for example, a living room or bedroom, does not give the right to a tax-free expense allowance. 

Previously, the deduction rate for home offices has been determined towards the end of the income year. From and including the income year 2024, the expense allowance rates will be determined before the start of the income year.