Cycling not only promotes health, but also protects the environment and the climate. More and more people are therefore switching to cycling for their commute to work. E-bikes have become particularly popular in recent years, although they are not that cheap. This is where bicycle leasing becomes interesting as an employee benefit. Since the beginning of 2019, employers have had the opportunity to provide their employees with a company bike tax-free through a bike lease.
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A company bicycle, often referred to as a company bike or job bike, is a bicycle provided by employers to their employees, usually through a bicycle lease. It is an attractive employee benefit that not only promotes employee mobility, but also has a positive impact on their health and the environment. These bicycles can be used for the daily commute to work, for business purposes and for private trips and offer a sustainable alternative to conventional means of transport.
Different terms that mean the same thing: Company bicycle, company bike, job bike - Different terms for a bicycle that employees receive from their employer through a bicycle lease, also called bike leasing.
The following options are available for the company bicycle from the employer:
Company bicycle via salary conversion: Employees rent or lease the bicycle via salary conversion. The instalment to be paid is deducted directly from the gross salary. As with the salary, income tax and social security contributions are incurred here, but these are lower in comparison to the corresponding payroll.
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A company bicycle can be a bicycle, e-bike or (S-)pedelec. In principle, any bicycle can be acquired as a company bicycle via a bicycle lease.
However, different tax conditions apply to the different types of bicycles:
Currently, bicycles and especially electric bicycles (pedelecs, e-bikes) that go up to 25 km/h make up the largest share of bike leasing.
Bike leasing, also known as bicycle leasing, is a straightforward process whereby employees can use a bicycle as a company bike via a leasing contract. This contract is for a specific period of time, usually between 36 and 48 months, and often includes insurance and maintenance in addition to the bike. Employers can provide the company bicycle to their employees in the form of a benefit in kind, in addition to salary, or in the form of salary conversion.
The salary conversion model is particularly popular. Bike leasing via salary conversion works as follows:
At the end of the leasing contract, there is usually the option to buy the bike at a reduced price (this is called a transfer of ownership) or to return it and lease a new one. These comprehensive leasing packages often include insurance and maintenance, which minimises employees' worries about repairs and damage.
Bike leasing is worthwhile because it offers numerous advantages for both employees and companies. Company bikes are modern, climate-friendly and cost-efficient for employers as well as employees. The company bike is an attractive employee benefit.
Employees benefit from an attractive and healthy means of transport that improves their quality of life and reduces commuting costs. In turn, companies strengthen their employer brand, promote employee health and fulfil their sustainability and climate commitments at the same time.
The cost of leasing a bicycle varies depending on the model and the terms of the contract. The total cost depends on factors such as the length of the contract and the additional services chosen. However, it is important to note that these costs are often tax deductible, which further reduces the financial burden.
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Get infoThere are two ways for companies to settle the company bicycle:
As a salary conversion, the settlement of a company bicycle takes place via the monthly payroll. The corresponding amount is deducted directly from the employee's gross salary. This leads to tax benefits as the employees' taxable income is reduced.
In both cases, the service bike for the individual employees must be recorded in the payroll accounting. The following information must be recorded:
Employers who offer bike leasing cover the costs of purchasing and leasing the bikes. Additional costs may be incurred for insurance and maintenance. However, these investments often pay off in terms of increased employee loyalty and motivation as well as positive environmental impacts.
The tax treatment depends on whether the company bike is given to the employee as a salary supplement or as a salary conversion.
In contrast to the company car, no further taxes are due for the kilometres travelled.
The savings from bike leasing are significant. Employees save significant sums through tax benefits and lower maintenance costs. Employers benefit from increased productivity, lower sickness absence rates and a positive image as an environmentally conscious employer.
Employees can save up to 40% on bicycle leasing compared to direct purchase.
The employer (lessee) concludes a leasing contract with the leasing company (lessor), the provider of the company bicycle leasing. This means that the company bicycle initially belongs to the employer, who gives the bicycle to the employee for the duration of the leasing contract.
Employees often have the option to buy the bike at a reduced price after the lease expires. Alternatively, it can be returned. The exact conditions vary depending on the contract and the provider.
Yes, private individuals also have the option of leasing bicycles privately. This offers the same tax advantages as company bike leasing and is an attractive option for anyone who wants to use a high-quality bike.
Flat-rate taxation of the pecuniary advantage after the end of the leasing or rental contract: §40 para. 2 sentence 1 no. 7 EStG
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