The fiscal incentives for company bicycles listed

News - Jan 28, 2023

More and more people are considering cycling to work. You as an employer can give your staff a beneficial push. There are plenty of advantages to persuade your employees:

1. Exemption of bicycle allowance up to a maximum of 35 cents/km

The amount of the bicycle allowance is considered tax-free income for the employee. Additionally, the employer can deduct the bicycle allowance amount as 100% tax-deductible business expenses, reducing the company's profits and the applied corporate tax accordingly.

2. No taxable benefit for a company bicycle

If an employee receives a company bicycle from their employer, it is not considered a taxable benefit, meaning the company bicycle is tax-exempt for the employee. The condition is that the company bicycle is used for commuting purposes.

3. Costs to encourage commuting by bicycle are 100% tax deductible

For the employer, costs incurred for acquiring, maintaining, and repairing company bicycles are 100% tax deductible. This includes expenses for bicycle parking facilities, changing rooms, and showers for cyclists. Moreover, this can be cumulated with the bicycle allowance. Also, no social security contributions are due on commuting done with the company bicycle.

4. Cumulation with company car is possible

A company bicycle can be accumulated with a company car. In other words, an individual can possess both a company bicycle and a company car. For example, one can easily combine commuting to and from work by taking a folding bike in the car, thereby helping to alleviate traffic congestion and parking pressure in city centers.

(Last update on March 29, 2024)