As of January 1, 2020, the tax scheme for the 'company bicycle' has changed. It will become easier for employers to let their employees benefit from a company bicycle. Entrepreneurs (for example small entrepreneurs and self-employed persons) can also use the scheme themselves. Company bicycle: how does it work?

A company bicycle makes it possible to use an (electric) bicycle or a speed pedelec for commuting. The employee then does not have to buy a bicycle himself. He or she may use the company bicycle for private purposes without any tax restrictions. So also for a bike ride, shopping or dropping off the children. What does a company bicycle cost for the employer?

That depends on the type of bicycle or rather: the price. The employer pays for the bicycle and usually also the costs for maintenance and repairs. These costs for the employer are net and do not have to be converted into gross wages. How much does a company bicycle cost for the employee?

The employee has to deal with an addition to the salary. Those who use a bicycle from the company privately benefit from this. He or she pays wage tax on the value of this benefit (the addition). The addition is 7% over the recommended consumer price of the bicycle and accessories (including VAT) per year. The employer adds this amount to the salary. The employee then pays tax on this on a monthly basis. 

Example calculation:

Can the employee go to work by car or public transport when it rains?

You can of course choose public transport or the car instead of the bicycle in bad weather. Your employer can give you a kilometer allowance for those days on which you do not pay tax. This depends on the agreements you have made with your employer. You must be able to prove that you traveled by car or public transport. Employee does not use the company bicycle privately, does additional tax have to be paid?

Yes, for the company bicycle it does not matter whether you use the bicycle for business (including commuting) or privately. That is why the addition always applies. This is different from the company car. Which means of transport are considered 'company bicycles'?

For the purpose of the regulation, a bicycle is understood to mean: a bicycle that is powered by muscle power, possibly with an auxiliary motor.

A bike from the company:

• electric bike
  speed pedelec

No company bike:

• moped
  scooter

What does the company bicycle cost me as an employer?

You can choose to purchase bicycles yourself or to lease bicycles through a leasing company.

Buy yourself
In this case, you as the employer pay for the purchase of the bicycle yourself. The costs for maintenance, repairs, insurance and charging electric bicycles can be added to this. This depends on the agreements you make with your employees. You can deduct the costs you incur for the bicycle from the profit tax.

Lease
You can also choose to lease bicycles through a leasing company. You then pay a monthly lease amount that includes all costs. You can deduct these costs from your profit tax. Personal contribution or reimbursement?

Contribution

The employer can ask the employee for a monthly personal contribution. This amount will then be deducted from the addition. The employee will see this reflected on his or her pay slip.
Employer sometimes reimburses addition

Reimbursement addition

The employer may also choose to pay the addition. This can be done by using the free space in the work-related costs scheme (if any). In that case, the employee does not have to pay any tax at all.