Yes, employees in Germany may receive tax-free reimbursement for using a private mobile phone for work purposes.
To qualify, the reimbursement must reflect a reasonable estimate of business-related use. The German tax authorities provide for both flat-rate and usage-based reimbursement options.
Flat-Rate Reimbursement (Most Common Option)
The most commonly used method is a flat-rate reimbursement. Employers may reimburse:
20% of the monthly phone bill,
Up to a maximum of EUR 20 per month,
Without requiring itemized proof of business-related calls or data usage.
This approach is widely accepted in practice and generally does not raise concerns during tax audits, provided that the amount reimbursed stays within these limits.
Higher Reimbursement Based on Actual Business Use
If work-related use exceeds the standard flat rate, employees may request a higher reimbursement. In such cases, the following conditions must be met:
Reimbursement can exceed EUR 20 per month only if the business use is clearly documented.
Employees must submit itemized phone bills highlighting the business-related portion (e.g. calls, data usage).
The employer must assess and approve the claim as a reasonable reflection of business use.
If these criteria are fulfilled, the higher reimbursement may also be exempt from tax.
Required Documentation
To support the reimbursement, whether flat-rate or usage-based, the following documentation must be provided:
A written declaration from the employee confirming that the phone is used for work purposes and stating the monthly phone costs.
For usage-based reimbursement, copies of relevant phone bills showing the business-related charges must be submitted.
All documents should be submitted monthly via the Remote People platform using the standard expense submission process.
Employers are advised to retain all documentation for their records in case of a tax audit by the German tax authorities.
Important Considerations
The phone contract must be in the employee's name.
These rules apply specifically to private mobile phones used for business purposes.