As part of the “Be Cyclist” cycling plan, the federal government plans to increase the tax and social exemption for people who cycle to work to €0.35/km, as specified in a press release from the 09/30/2023.
Brief reminder. You can grant yourself (as manager) and your workers an exempt bicycle allowance for trips made by bicycle (speed pedelecs included) between home and the workplace. For you, as an employer, these costs are 100% deductible. You must include the total kilometers traveled by bike and the total amount of compensation on the tax form (281.10 for workers, 281.20 for managers).
Higher maximum bicycle allowance. From income year 2024, the maximum exempt compensation should increase to €0.35 per kilometer (instead of €0.27 per kilometer in 2023), an increase of 30%. The CCT in your sector may provide lower compensation. You can then voluntarily choose to allocate the maximum exempt amount to your employees.
New annual ceiling. Unlike today, an annual ceiling of €2,500 would apply from the income year 2024. This corresponds to a distance of 7,142 km per year, calculated with a bicycle allowance of €0.35 per kilometer .