Company bike tax benefit
You can get a company bike as a tax-free personal benefit up to a value of €100 per month. This means that a company bike is a tax-free benefit up to €1,200 annually, throughout its contract period!
For you as employees, this means the chance to get a bicycle of your dreams conveniently as part of your salary – as a turnkey service, of course. An employer can also offer this benefit on top of wages or pay a share of the bicycle’s acquisition cost. In most cases, the bikes are leased through a temporary leasing contract. An employer can also buy a bicycle to own it fully.
A bike benefit can be deducted from your pay, same as any other employee benefit. This means that your taxable income will decrease by the taxation value of the company bike. As you pay less tax for the reduced income, the share of your net salary will decrease an average of 20%–40% less than the taxation value. In other words, a company bike benefit can help you save 20%–40% of the total bike acquisition costs.
Tax exemption can help you save up to 20%–40% of the acquisition price of your dream bike!
What is company benefit bike?
An employee bicycle refers to a benefit given by the employer, where the employee gets a new bicycle or electric bicycle. An employee bicycle is a tax-free fringe benefit of up to 1,200 euros annually, which the employer provides. The employee can use the bike freely during work trips and in their free time. So you can get a company bike as a tax-free personal benefit up to 100 euros per month.
You don't have to use the employment pillar only - or at all - for business trips. You can also get one for fat bike forest trips, city philandering and summer bike runs!
How does the bike benefit affect my salary?
Your employer can offer this great benefit in three ways:
- As part of the total salary (gross monthly salary before taxes)
- Support the benefit with some portion (part as part of the salary and part of the benefit on top of the salary)
- Offer the bicycle benefit completely on top of the salary
In most cases, the employer offers the benefit as part of the total salary. In this case, the taxable value of the benefit is deducted from your salary, in which case your employer's salary expenses will decrease and your tax rate will decrease, as the taxable amount will decrease slightly.