If an employee travels to work by bicycle, the employer can pay a “home-work” allowance.
If the allowance does not exceed EUR 0.25/km, it is completely exempt from taxes and social security contributions. This is a 100% tax-deductible expense for the employer.
In addition, the employee can deduct 0.25 EUR/km of home-work journeys from his professional income.
The best part is that these two tax benefits can be combined with the provision of a company bicycle!
For example, let’s say an employee lives 10km from his workplace and has a company bike. Assuming that he or she goes to work 220 days a year :
- No taxation on the bicycle NTD
- His employer pays him EUR 1,100.00 per year net
- The employee can deduct EUR 1,100.00/year as actual expenses in his tax return
