Companies want to provide their employees with a flexible and climate-friendly mobility offering, in order to meet the changing needs and wishes of their employees.
In addition to a regular job ticket, where the company provides the employee with a monthly public transportation ticket, solutions also include company bicycles, car sharing, or a mobility budget.
Assembling an offering seems to be very daunting. Very often the topic of mobility budget benefits ends up with a request for information about taxes and payroll accounting.
This is an important topic for both companies and employees, and it also determines how attractive the introduction of a mobility budget, for example, is for companies.
At first glance, the taxation of the mobility budget appears to be quite complex. Therefore we, help you clarify what needs to be considered when it comes to taxation, what is actually taxed or has to be taxed, and what is tax-free.
First of all, the provision of a mobility budget by the company to employees for private use turns out to be a non-cash benefit of a taxable wage component subject to social security contributions.
However, legislators have recognized the benefits of this way of sustainable mobility and have exempted some of these new forms of mobility from tax altogether. Others, on the other hand, can be compensated via a flat-rate tax paid by the employer. This means that employees are noticeably relieved.
Create the work place of tomorrow with RYDES.We are happy to support you with designing the best mobility solution for your company. Get in touch with us!Info anfordern
Companies using the RYDES mobility benefit solution, issue the mobility budget to their employees in the form of a limited virtual credit card. This constitutes a non-cash benefit. Employees can use the available credit on the card as they wish for their daily mobility. The budget is available at the end of the month, can be carried over to the following month, or expires.
Because of the wide range of options offered by the mobility budget, employees can choose between bus, train, e-bike, car sharing, or cab on their way to work or home. Taxing these different forms of mobility initially appears complicated.
However, in order to simplify taxation, a uniform flat tax rate of 30% can be settled here (in accordance with section 37 b of the German Income Tax Act), since the mobility budget and its inclusive services are company benefits that are provided in addition to the agreed salary and do not exceed €10,000 per year. Up to an amount of €50 per month, the mobility credit is even completely tax-exempt.
As an employee benefit, the mobility budget proves to be extremely attractive thanks to the tax exemption and a moderate flat tax rate. This is due to the non-cash benefit clause. This is because the mobility budget, in the form of a monthly credit that can be used to book and pay for mobility services via a card, and therefor is treated as a benefit in kind from a tax point of view.
Our mobility expert at RYDES would love to share their knowledge with you about how to organize your company mobility. Feel free to schedule a 30 min call with us!Info anfordern
For companies, a "taxation of benefits in kind" means a significantly lower overall taxation. For employees, too, the use of a benefit in kind has a tax advantage over a salary payment.
RYDES hereby states that the information provided about benefits on our website is only for informational purposes only and does not represent any tax or legal advice. The content is not intended to replace any individual, binding tax and legal advice that addresses your specific tax or legal situation. We, therefore, declare that information provided is without guarantee of correctness and completeness.
We continue to provide updated information and research insights. We as a provider of this information cannot assume any liability for the accuracy, completeness, and timeliness of the information provided. In particular, the information is of a general nature and does not constitute tax or legal advice in individual cases. For questions about taxes and legal topics, please consult a certified tax advisor or lawyer.
The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.
A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!
Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.
This article is to inform you about the fuel & charge card and what the advantages of a hybrid card are.
Here you find all the info about travel allowances (Fahrkostenzuschuss) and taxation in Germany.
How can the mobility budget be integrated into corporate mobility management? Or can it even replace it? We'll clarify that in this article.
In this article we will tell you about the job ticket. What is it? What do you have to consider in terms of tax law? How does it relate to the mobility budget?
This article is all about Bicycle-Leasing as a supplement to the mobility budget. How does bike leasing work? What are the benefits of company bikes? What's the deal with salary conversion?
Read all information about mobility budget and ticket reimbursement usage. How do you reimburse your ticket? Which tax implications apply.
Mobility Budget Taxes, Taxation and Non-cash remuneration. We will give you a brief overview of how the individual means of transportation are taxed.