An company bike: a sustainable tax friendly reward for your staff

An (electric) company bike becomes more and more successful as reward tool. The Belgian Mobility department announced this year than 1/5 of the Flemish employees are regularly taking the bike to go to work. In Brussels and the Walloon Region this percentage is lower, however also there the company bike is gradually becoming more popular…

What do you need to know before offering a company bike to your staff?

1. Tax beneficial for the employer

Providing a company bike is tax beneficial if the employee concerned is ‘regularly using’ this for commuting purposes. In this scenario, the company bike is 100% tax deductible, not only the purchase or leasing cost, but also the maintenance and storage expenses.

2. Financially interesting for the employee

In case of regular use for commuting purposes, this benefit is exempt from taxation and social security contributions in the hands of the employee. This is an exempt social benefit.

3. Potential extra allowance for the employee

In addition, the employee may be granted a bike allowance of maximum EUR 0,24 per cycled kilometer. Being paid/rewarded to cycle to work and maintain your condition… the dream of every cycling fan…

4. A positive image as employer…

As an attractive employer, it’s more easy to fill vacancies and avoid employees leaving the organization. A company bike implements a sustainable reward for the employee and contributes to a modern, sportive and green image for the employer.

5. Good habits, good friends

When granting a company bike to employees, it’s a good and necessary habit to implement a good policy. Who is eligible, what are the conditions, what is under insurance, who is bearing which kind of expenses, and who is going to pay potential traffic fines … ?

An answer to your questions:

  • This regulation on company bikes is applicable to city bikes, mountain bikes, race bikes, but also electric bikes or speed pedelecs.
  • In these Corona times and mandatory home working, quid regarding the notion ‘regular use of commuting purposes’? The Belgian Minister of Finance has confirmed that home work during the Corona crisis does not impact the tax exemption for providing a free company bike to employees.

Interested or additional questions? Feel free to contact us and we may help you with a fresh look at your remuneration policy, additional background and / or implementation of concrete benefit plans.

Stay informed and follow our updates via Facebook and LinkedIn.

Consumption voucher for your employees

After the meal- and de eco voucher, Belgian government has introduced the consumption voucher. In other words, if you want to reward your employees before year-end with a tax optimal extra benefit in Belgium, the new consumption voucher may be an interesting option!

We have summarized the most important of attention hereafter:

What?

A consumption voucher may be used by your employees in hotel, restaurant, bars or other retail shops (who has been obligate to close for more than one month due to the COVID-19 measures) or in cultural or sports sector. The nominal value of such voucher is maximum 10,00 euro / voucher. The total amount may not exceed 300,00 euro/ employee.

Why?

The introduction of the voucher is a measure of Belgian government to re-enforce industries / sectors which have been heavily affected by the COVID-19 measures.

Your benefit as employer?

This consumption voucher is not subject to social security contributions, neither to personal income taxes. In addition, the cost of this voucher is 100% tax deductible for the employer. At the same time, the employer can support the local economy, retail and / or potential clients by purchasing these voucher with them. A package deal and beneficial price may be negotiated between the employer and the local hotel/restaurant operator to come to a win-win situation.

Additional conditions:

  • The consumption voucher may not be used to replace existing remuneration or other benefits. It should be something extra, an extra benefit for the employees;
  • The consumption voucher does not qualify as ‘remuneration’. In other words, this does not have any impact on indexation, vacation pay of potential severance pay;
  • This benefit has to be captured by CBA (at sectoral or corporate level), either by individual agreement. It has to be in writing;
  • This is a temporary measure. The consumption voucher can only be purchased till December 31, 2020 and can only be used till June 7, 2021.

Interested or additional questions? Feel free to contact us. We may help you with a fresh look at your remuneration policy, additional background and / or implementation of concrete benefit plans.

Stay informed and follow our updates via Facebook and LinkedIn.