Your company is renewing its IT equipment? Don’t throw await the used equipment give it to your employees.
Why give a used equipment to an employee?
Providing benefits to employees is a good wait to avoid turn over.
However, in France most of the benefits are taxable. The most obvious example is the health insurance. The amount paid by the employer on this benefit is subject to income tax for the employee.
But what about used equipment given to the employee?
When the employer give a used IT hardware to its employees, this benefit is not subject to social and fiscal contributions neither for the employee nor for the employer.
However, this exemption is limited.
What are the condition for this benefit to be exempted?
For the donation of an equipment to be exempted from any contributions there are 3 conditions:
- The equipment must be fully depreciated.
- The equipment must allow the connection to electronic communication. (a smartphone would do a printed wouldn’t)
- The gift(s) must not exceed 2000€ per year per employee.
Of course, needless to say, the gift must be free, which excludes any employee participation.
An employee can giver used equipment to its employee. This gift is free of taxes if, it does not exceed 2000€ per year per employee, it allows connection to the internet and if it is fully depreciated.