Since November 2012, companies can provide employees with bicycles for both business and private use under similar conditions as for cars under the JobRad -scheme
. This means that the taxable advantage is calculated as 1% of the list price of the bicycle per month. However, contrary to the rules for company cars, no additional advantage is calculated for home-work travel with a company bicycle. The provision of a company bicycle does not fall under the rules for benefits in kind with its tax-free threshold of 44€ per month. The new rules explicitly include electric bicycles as long as they are considered to be bicycles under traffic law (motor power not over 25 km/h).
For employers, the costs of company bikes can be deducted as a cost in their balance sheets for income tax purposes, using a method of linear depreciation over an assumed useful life of 7 years. As with cars, companies liable to VAT have the right to deduct the VAT on company bicycles as input tax. To take into account the private use of a company bike, the financial advantage of the employee (1% of the list price per month) is counted as an income for the company
How does it work?
The employee selects a bicycle from one of the over 2000 JobRad retailers and signs a silence contract with the employer. The cost of the bike is then deducted via salary sacrifice. The cost of the bike is then deducted via salary sacrifice. It is also possible for employers to take on part of the instalment, or even take over the instalments completely.