Bicycle rental in your mobility plan? A great choice! In this blog, you will discover why bicycle rental is so financially interesting for your business.
Our government is becoming increasingly environmentally conscious and fully supportive of environmentally responsible initiatives such as bicycle rentals. The result is a very favorable financial regime for companies.
As an employer, you do not have to pay employer contributions (Social Security Fees) on bicycle rental. This is because the Social Security no longer considers the company’s bicycle as a salary benefit when your employee also uses the bicycle for commuting to work. The frequency may be agreed between the employer and the employee.
All costs associated with integrating bicycle rental into your organization are 100% deductible, e.g. showers, lockers, change rooms and bicycle storage. In addition, the cost of a leasing service is not recorded in the company’s balance sheet, but can be recorded directly as an expense.
As an employer, you can choose to offer your employees a bicycle allowance to encourage cycling within your organization. This bicycle allowance is fully exempt from Social Security Fees and taxes up to a maximum of EUR 0,24 per kilometer. It also allows you, as an employer, to offer your employees bicycle rental services free of charge.
If you choose, as an employer, to offer bicycle rental through the exchange of gross salary, this will result in a lower gross salary. For you as an employer, this means a decrease of the Social Security Fees and Withholding Tax on your employee’s gross salary, while your employee may receive an additional benefit. An ideal way to offer bicycle rental in an interesting way in your organization.
Increasingly, the government will increase the tax burden on polluting cars as a result of the introduction of the WLTP regime, in the form of a more limited tax deduction. In addition to using greener cars, bicycle rental will be the ideal link for your mission towards a smarter mobility plan.
Would you like to know more about bicycle rental and the possibilities for your organization? We will be happy to help you further through our contact form.