How is the taxed fringe benefit for a telephone worked out?
When does this apply?
This applies when the employer:
- gives the employee a phone line at home, or
- pays for (or pays back) the employee's phone costs.
Why is it taxed?
The employee may also use the phone for private calls. That private use counts as extra income. So a fixed amount is added to the employee's wages, and tax is paid over it. This is called a taxed fringe benefit. (A fringe benefit is something extra an employee gets on top of their pay.)
How much is added?
At least this amount per year is added to the wages:
- Aruba: AWG 480.00 (AWG means Aruban florins)
- Curaçao and St. Maarten: XCG 480.00 (XCG means Caribbean guilders)
- BES (Bonaire, St. Eustatius and Saba): $268 (US dollars)
Example
An employee in Curaçao gets a phone line at home from their employer. XCG 480.00 per year is added to their wages. That is XCG 40.00 per month.