The bicycle as an alternative to the company car or as a nice extra, that's scoring points with your staff. There are numerous advantages to a company bicycle. What are the main advantages of such a company bicycle? And how is it practical?
The formula: bicycle leasing or bicycle purchase
When offering a (electric) company bicycle, you can choose either a bicycle lease or a bicycle purchase.
- Bike leasing: you rent (or lease) a bike on a long-term basis including a full service package (maintenance, breakdown and insurance), and can spread the payment over time.
- Bicycle purchase: you buy the bicycle. You then have full ownership of the bike yourself.
The benefits of a company bicycle
1. 100% tax deductible
If you provide a bicycle - whether leased or purchased - to an employee, and the employee regularly uses that bicycle for commuting, that bicycle is 100% tax deductible. This applies to both regular bicycles and electric bicycles, including non-autonomous speed pedelecs.
If your employee also receives a bicycle allowance, that too can be fully deduct ed. The maximum exempt amount is fixed at EUR 0.25 per kilometer cycled.
Not only the bike and bike allowance, but also maintenance costs are 100% deductible. The same goes for accessories, such as helmets, padlocks, fluorescent jackets, child seats, etc.
Not a bad deal. Not even for the employee who does not have to pay a benefit in kind (VAA) like with the car. The bike will be completely exempt from income tax.
2. No social contributions
If your employee regularly uses the bicycle for commuting, and you have that employee pay for the bicycle through the principle of salary exchange, then part of the salary does not count as a salary benefit on which employer social security contributions must be paid.
By returning those savings to the employee through an investment in the bicycle in the form of a discount for the employee, you as an employer can create a completely cost-neutral bicycle plan (possibly with bicycle reimbursement).
If the bicycle is used by the employee exclusively for private travel, then it will be considered a wage benefit and NSSO contributions and taxes will apply.
3. More bike = less car
More bikes results in fewer cars on the road and consequently more space in your parking lot. This cost is often underestimated: per parking space, you quickly put 18,000 euros on the table on an annual basis. Then a small investment for a bicycle parking facility is justified, right?
4. Employer Branding
Offering a company bicycle to your employees makes your image as an employer more modern, fresh and green, which not only contributes to an increased retention rate, but also attracts new employees. It gives your company sustainability and ensures that you remain relevant to future talent.
5. The bicycle highway: smooth from hub to hub
The Flemish and Brussels governments are total fans of cycling. The best example of this is the growing number of bicycle highways. A bicycle highway provides a quality bicycle connection between cities, residential areas and important employment sites. You can consult the active and planned bicycle highways online.
6. Good health, better attendance and more French fries
Starting the day with a bike ride to work provides energy and a breath of fresh air. It also leads to less stress and has a positive impact on employees' fitness and health, a benefit that congestion-ridden colleagues will only envy.
Nice touch: employees who travel three kilometers by bike three times a week are on average one less day absent due to illness each year than their car-driving colleagues.
Another compelling reason: 20 kilometers a week on your bike will make you sweat out 11 packs of French fries on a yearly basis. So you never have to worry about a greasy Friday at work again.