What do we mean by bicycle?
By the term ‘bicycle’ we mean three types:
– The bicycle:
Any vehicle with 2 or more wheels:
that is driven by muscle power via pedals or handles
that is equipped with an electric auxiliary motor up to 250 W and no longer provides assistance from 25 km per hour (or earlier, if the driver stops pedaling)
The following types are included: classic bicycles, racing bicycles, mountain bikes, city bicycles, cargo bikes, adapted bicycles for the disabled (3 wheels, drive via handles, etc.), foldable bicycles, hybrid bicycles, with or without electric drive.
Not intended are: scooters, hoverboards, roller skates, skateboards, monowheels, (electric) segways. These are motorized or non-motorized locomotion devices.
– The motorized bicycle:
Any two-, three- or four-wheeled vehicle with pedals:
equipped with an electric auxiliary drive whose main purpose is pedal assistance, the driving force of which is interrupted at a maximum vehicle speed of 25 km per hour, excluding the bicycles mentioned above.
The rated continuous maximum power of the electric motor is a maximum of 1 kW.
– The speed pedelec:
Any two-wheeled vehicle with pedals (excluding motorized bicycles):
with an electric auxiliary drive whose main purpose is pedal assistance, the driving force of which is interrupted at a vehicle speed of maximum 45 km per hour.
The maximum rated continuous power of the electric motor shall not exceed 4 kW.
Motorized bicycles and speed pedelecs only qualify for favorable tax provisions if they are electrically powered.
The bicycles, motorized bicycles or speed pedelecs can be equipped with a garage button (also called Walk Assist, Park Assist, departure assistance, parking assistance, etc.), which allows them to move autonomously to a limited extent, for example to make it easier to walk up a slope with your bicycle. going on.
The so-called e-bike can only qualify because of its electric drive if it can be included in one of the 3 categories (bicycle, motorized bicycle or speed pedelec)*.
*There is no clear definition of an ‘e-bike’. These are bicycles where a throttle lever or button controls the electric motor and the driver no longer has to pedal. He can also cycle himself without switching on the motor.
What tax provisions exist with regard to a bicycle?
For ecological purposes, several measures have been taken to encourage bicycle use.
the granting of compensation by the employer combined with a tax exemption up to a maximum amount of 0.25 euros per km traveled for tax year 2023, income 2022 with the bicycle for commuting. (Tax year 2024, income 2023: 0.27 euros.) The purpose of this compensation is to encourage the use of the bicycle and to cover the usage costs.
the provision of a company bicycle by the employer for the benefit of his employee with a tax exemption.
the option to indicate the actual costs for an amount of 0.25 euros per km traveled for tax year 2023, income 2022 for home-work trips. (Tax year 2024, income 2023: 0.27 euros.)
Moreover, you can combine several benefits. For example, you benefit from an exempt bicycle allowance in combination with the exemption from the benefit resulting from the provision of company bicycles, while you declare your actual costs at 0.25 euros per km traveled for tax year 2023, income 2022. (Tax year 2024, income 2023: 0.27 euros.) If you choose to declare the actual costs, you should not deduct the reimbursement from the total amount of the actual costs otherwise you will lose the benefit of the exempt bicycle allowance.
What is a bicycle allowance?
A bicycle allowance is a kilometer allowance that the employer gives to his employees who commute entirely or partially by bicycle.
The bicycle allowance is a favor. The employer can decide whether or not to grant them and also decides on the amount.
This bicycle allowance should cover the cyclist’s costs, but above all it should encourage more employees to use their bicycles.
The kilometer allowance is exempt from tax up to 0.25 euros per km traveled for tax year 2023, income 2022 (tax year 2024, income 2023: 0.27 euros). In other words, as long as the amount of the mileage allowance is not higher, no tax must be paid on it. If the employer grants a higher mileage allowance, the remaining amount is taxable as professional income.
For which types of bicycles are you entitled to an exempt bicycle allowance?
The granting of a bicycle allowance is not linked to the type of bicycle (it does not matter whether it is a racing bicycle, hybrid bicycle, electric bicycle, mountain bike, etc.). The only condition for receiving an exempt bicycle allowance is its effective use for commuting.
It is therefore of no importance whether you use your own bicycle or a bicycle made available to you by your employer.
How is my bicycle allowance taxed?
The bicycle allowance is exempt from income tax up to 0.25 euros per km traveled for tax year 2023, income 2022. (Tax year 2024, income 2023: 0.27 euros.)
If your employer gives you 0.15 euros per kilometer, they are completely exempt from taxes.
If you get 0.26 euros per kilometer, the first 0.25 euros for tax year 2023, income 2022 are exempt from taxes. The remaining 0.01 euros are in principle taxable (because they are considered a salary).
You can also receive a bicycle allowance if you combine the bicycle with public transport (train, bus or tram), even if there is an intervention for, for example, your train subscription.
You cannot combine the bicycle allowance and an intervention in public transport costs for the same route and for the same period. After all, you can only be reimbursed once for the same process. So you are only entitled to a bicycle allowance for the distance you actually travel by bicycle between your place of residence and the train station.
The employer must ensure that he can determine with certainty how many trips you have actually made by bicycle and which part of the compensation is therefore exempt from taxes.
To prove your use of the bicycle, the usual means of proof apply, with the exception of the oath. This evidence may consist of a ticket from a guarded bicycle shed, a suspicion, a testimony, etc.
You cycle 5 km to work every day. Your employer gives you a reimbursement of 0.24 euros per km. So every year you receive 0.24 (euros) x 5 (km) x 2 (round trip) x 220 effective working days = 528 euros.
If you travel 20 kilometers to work every day, you will receive 2,112 euros, tax-exempt.
My employer gives all employees the same reimbursement for travel expenses. I go to work by bike. Will my compensation be fully or partially exempt from taxes?
No, the bicycle allowance is only exempt from taxes if it is specifically and explicitly granted for the use of the bicycle for commuting. It must therefore be calculated on the routes actually traveled. A lump sum allowance can never be regarded as a bicycle allowance that is exempt from taxes. However, the lump sum compensation can be exempted up to a maximum amount of 430 euros (tax year 2023, income 2022).
I only use the bike during the summer to go to work. During the winter I take the bus. What bicycle allowance can I receive?
In principle, you are entitled to a tax-exempt bicycle allowance for the kilometers traveled during the summer. During the winter you take the bus and of course you do not receive an exempt bicycle allowance. However, the compensation you receive for your bus subscription will also be completely exempt from tax (public transport) if all conditions are met.
I use my bike to ride to the train station. I then take the train to another station where I ride to work with my other (parked) bicycle. What compensation am I entitled to?
You can receive compensation, both for the part between your home and the station and between the station and your workplace. The compensation you receive for your train subscription will be completely exempt from tax (public transport) if all conditions are met.
How do I report my bicycle allowance in my tax return?
If the bicycle allowance you receive does not exceed 0.25 euros per km traveled for tax year 2023, income 2022, you do not have to declare it in your tax return. (Tax year 2024, income 2023: 0.27 euros.) If you receive a higher compensation, you will have to declare the difference and be taxed on it.
If your employer has entered your exempt bicycle allowance on your pay slip 281.10 in point 18, c (‘Contribution to travel costs – Other means of transport’), you must ask him to correct this. Otherwise you will be taxed on that amount.
Is the provision of a company bicycle by the employer taxable?
You use the bicycle for travel between your place of residence and place of employment
This benefit is tax exempt. You may also use the bicycle for other journeys.
You do not use the bicycle for travel between your place of residence and place of employment
This benefit is taxable (it will be taken into account when calculating your tax). Your employer will mention this benefit on your pay slip 281.10 or 281.20.
Which types of bicycles are eligible for tax exemption for the provision of a company bicycle?
This can concern all types of city bicycles or hybrid bicycles (mix of a city bicycle and mountain bike). The provision of an electric bicycle, which can be considered a bicycle, motorized bicycle or speed pedelec, is eligible for the measure.
Can an electric bicycle be made available to me by my employer in the context of a tax-free provision of a company bicycle?
Yes. Provided certain conditions are met, an electric bicycle is also eligible.
Can I combine the tax-free provision of a company bicycle by the employer with the bicycle allowance of 0.25 euros for tax year 2023, income 2022?
Yes. The exempt benefit of the provision of a company bicycle can be combined with the kilometer allowance of 0.25 euros for tax year 2023, income 2022 for the use of a bicycle. (Tax year 2024, income 2023: 0.27 euros.) In this case, the combination is permitted for the same trip or part of it.
Can the exempt provision of a company bicycle be combined with the exemption 'other means of transport'? If so, is this for different parts of the same route? Does the exemption apply to the same route or part of it during different times of the year?
A route can consist of multiple movements. The concept of ‘route’ is a geographical term while the concept of ‘displacement’ refers to the act of moving by means of a specific means of transport. Every move counts.
By ‘other means of transport’ you may mean all home-to-work journeys that did not take place by public transport or common transport organized by your employer.
If a commute is done partly by bicycle and partly by car, you should consider this as two different trips. Any relocation may give rise to compensation or an exemption.
For the same trip, the exemption from the provision of a company bicycle cannot be combined with the exemption for “other means of transport”. However, the exemption can be combined if it concerns two different journeys.
Can I deduct the actual costs if I use a bicycle for my personal commuting?
Yes. The actual costs can be deducted from your taxable income.
If you go by bicycle, a flat rate of 0.25 euros per km traveled for tax year 2023, income 2022 applies for commuting. (Tax year 2024, income 2023: 0.27 euros.)
This flat rate of 0.25 euros per km traveled applies in the absence of proof of the actual costs. In other words, you do not have to keep any evidence, but you must be able to demonstrate the actual use of a bicycle.
If you wish, you can deduct your actual costs from your commuting trips by bicycle based on the actual costs incurred. To do this, you must not only be able to demonstrate that you are actually using a bicycle, but you must also be able to provide evidence of the costs you have incurred. However, in the vast majority of cases, the flat rate of 0.25 euros per km traveled will be more beneficial.
If you opt for the actual professional expenses, you should not deduct the bicycle allowance granted by your employer from the total amount of your actual professional expenses, otherwise you will lose the benefit of the exempt allowance.