answersspring in the country. For many people, this is the signal to replace their car with a bike. According to figures from human resource services company Acerta, one in three Belgian employees rely on their steel horse for their work trip from home (or part of it). In addition to taking advantage of exercise and fresh air, some employees also receive a bicycle allowance from their employer. For whom is this? What are the conditions? And do you also get such compensation if you move with the accelerator or electronic step? jobat.be puts you on your way.
Written by Thomas Russell in collaboration with Jobat
Last updated:
03-21-22, 09:32
Just under 15 per cent of Belgian employees went to work exclusively by bike in 2021, according to figures from Acerta. This immediately means a slight increase compared to 2020, when the numbers came in at 14.6%. The number of bicycle allowances granted remained fairly stable in 2021 compared to the previous year.
How much extra pay do cyclists collect each month? See here how much you can earn from cycling to work.
not required
The bicycle allowance is valid from the employer to the employee. So the employer is never obligated to give it effectively. Are you compensated for coming to work by bike (or covering part of your bike journey, eg to and from the station)? Then there’s the positive news, because the bicycle allowance is exempt from income tax and Social Security contributions under certain conditions:
• For example, compensation must be specifically and explicitly awarded for actual bike trips, based on mileage.
• The exemption applies up to €0.24 per kilometer for income from 2021 and therefore your tax return for 2022. For the assessment year 2023 and therefore your income from 2022, this amount will be increased to €0.25. If you exceed this amount, you must declare the above amount on your tax return. The employer and employee must pay social security contributions for the portion over 0.24 or 0.25 euros.
Do you cover part of your bike commute? Until then you are entitled to compensation
Hundreds of Euros a year
So the employer can limit the amount of the bicycle allowance itself and can also impose a maximum limit (eg 0.25 € per kilometer up to 60 € per month) or specify that the reimbursement applies only to the one-way trip. For the sports fans among us, that amount can be added. Let’s say you live 14 kilometers from your job and therefore travel 28 kilometers per day by bike, during 210 working days of the year, you can – at the maximum rate for the year – count on a tax-free bicycle allowance of €1,470 per year (210 days x 28 km/day x 0.25€/km). In this example, you will receive €122.50 per month as a tax-free amount on top of your pay slip. You didn’t earn badly and in the meantime you took care of your health and the environment.
On top of this bicycle allowance, your employer can also provide you with a tax-free corporate bike. This is not a taxable benefit, provided you actually use the company bike for your business trip from home. Coming to work with your own bike is also very affordable. In addition to a bicycle allowance, you can also declare actual bike expenses—such as depreciation and maintenance of your bike and parking costs—as a tax-deductible occupational expense on your tax return.
Are you entitled to a company bike? Read here wWhat you need to know
What is a bicycle?
The question above may sound a little strange, but not every type of transportation qualifies for a bike allowance. In recent years, electronic steps, pedal units and unicycles have increasingly colored the modern street scene. The government understands the term “bicycle” as being of three types: a bicycle, a motorbike, and a pedal. You can check your transfer status against Summary at www.financien.belgium.be. In short: accelerator pedals are compensated if they’re powered by electric, and the tax benefits don’t cover electronic steps and unicycles.
This article was brought to you by our partner Jobat.be.
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