New trend: service bicycle instead of company car

Why your employer can also provide you with a service bicycle and what you should be aware of for tax purposes

Service bicycle instead of company car / Picture: iStock

Service bicycle instead of company car / Picture: iStock

The congestion in the cities is getting longer and longer, the parking lots more and more expensive and expensive. At the same time, more and more is being done for bicycles: Better cycle paths ensure more safety and faster progress. In many regions, even express bike paths are being created that make the switch to cycling interesting for more and more commuters. No wonder that there is already a new trend:

Service bicycle instead of company car. More and more employers are providing their employees with a bike that they can also use privately. Ideally, everyone benefits from it:

  • The employee enjoys a good bike and spares the environment more often on his way to work, but also in his official and private trips – and incidentally, he also does something for his fitness and health if he leaves the car more often and pedaling.
  • The employer is happy about a motivated employee who does something for his fitness.

The tax office talks a word

But as always, when it comes to employer benefits, the tax office also talks a bit about the service bicycle. In other words, for the benefit you get from the service bike, you have to pay taxes as an employee.

How this works, the tax authorities have even a few years ago in a decree regulated (coordinated country decree, Ministry of Finance of Baden-Württemberg, 23.11.2012, Az. 3 – S-233.4 / 187). As with the car, the 1 -% control is also applied to the service bicycle in order to steal the advantage. It works like this: 1% of the bike price is taxed per month as if you had received the amount as a wage. The basis for this is the non-binding price recommendation of the manufacturer for the bicycle – rounded down to a full 100- € amount.

Example: Your employer provides you with a service bike that costs € 1,000, according to the manufacturer's recommended retail price. 1% of this is 10 €, for which you pay additional taxes. So that's € 1.40 to € 4.50 per month – so not too much.

And what about e-bikes?

E-bikes are becoming more and more fashionable because they offer many advantages of a bicycle. But with the help of the electric motor, it is possible to get to work without sweaty effort. For e-bikes taxation is the same as for the normal bike.

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Leave a reply This entry was posted in Daily & Leisure, Holiday & Leisure and tagged out with tips on August 3, 2016