The tax plan makes it a lot more attractive to make a bicycle (electric or otherwise) available to your staff. In 2020 a fixed addition will be introduced, as is the case already for lease cars.


The current regulations surrounding company bicycles are draconian:

when reimbursing or providing a bicycle to an employee at the moment its commercial value must be accounted for as additional salary. Let’s say that you provide a bike worth €2,000 to an employee earning €35,000 a year, then this immediately results in an additional nett tax burden on the employee of around €840. The employer could possibly include the €2,000 in the tax-free WKR budget so that it does not cost the employee anything.

When a bike is provided (i.e. the employer remains the owner) at the moment the kilometres covered for private purposes multiplied by the price per kilometre, counts as salary. The price per kilometre is derived from the costs per kilometre incurred by the bike in electricity, maintenance, repairs and insurance. An own contribution made by the employee for private use may be deducted when calculating the benefit.

The present scheme therefore involves a lot of red tape.

 

Under the new scheme an annual nominal addition of 7% of the value of the bike will be sufficient. In our example the nominal addition on €2,000 * 7% = €140 (gross). This would cost the employee €59 a year in tax.


To compensate for this the employer could choose to cover this tax using the tax-free WKR budget. In which event the bike will cost the employee nothing at all.

 

Under the new scheme the employee would be liable for €59 a year (instead of a one time levy of €840). If the employer fully compensates the employee by using the tax-free WKR budget/final levy, the new scheme creates more room in the tax-free budget for other things.

In short: a real improvement. So do take advantage of it!