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

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.

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