Disclaimer. The English translations provided herein are generated by artificial intelligence from Dutch and French content. While every effort has been made to ensure accuracy, we cannot guarantee that the translations will be error-free. The translated content is for readability purposes only and should not be considered as legal advice. For accurate information, employers and HR professionals are advised to consult the original versions in Dutch or French, or to consult your Securex Legal Advisor.
This new obligation stems from a new circular from the tax administration. There is no impact on the wage calculation, as the benefit of the company bicycle remains exempt from withholding tax under the same conditions as before. This change does require an administrative adjustment from you as an employer, as you will have to estimate the benefit for each company bike.
Why this new tax sheet requirement?
Do your employees or company directors opt for the forfaitary deduction of professional expenses in personal income tax? Then their benefit of the company bicycle and bicycle allowance is exempt under conditions (see below).
Different is the case for those who choose to prove their actual professional expenses. From 2024, they will be automatically excluded from these exemptions and will have to pay taxes on those benefits.
If, when settling taxes, it turns out that the employee or business manager opts for the actual professional expenses, the tax authorities will, thanks to the new chit requirement, have within their hands the necessary information to add the benefit of the bicycle and the bicycle allowance to the taxable income.
Business expenses are costs you incur for your work. You may include them in your taxes. Do you not submit any expenses yourself and, in other words, prove no actual professional expenses? Then the tax authority automatically takes into account a forfait amount of professional expenses, equal to 30% of taxable income with a maximum of €5,750 (amount 2024).
No impact on withholding tax
The check on whether someone opts for the flat-rate or actual professional expenses is done at the tax stage and not at the earlier stage of wage calculation. After all, at the time wages are calculated, you do not have to make that choice yet.
In other words, withholding tax is never due on the benefit of the bicycle and bicycle allowance, provided the conditions below are respected. This principle applies to both employees and company directors. Moreover, it applies both to those who opt for the lump-sum or actual cost in tax.
Fiscally and socially exempt under conditions
As already mentioned, the benefit of the company bicycle and the bicycle allowance is only exempt for those employees and company directors who opt for the deduction of the fait professional expenses in their tax return. But that is not enough. In addition, other specific conditions apply.
It would take us too far to repeat all the conditions here. You can read them in detail in our topic articles (available in Dutch or French). One of the main criteria for being exempt is that the company bicycle actually is used for residential work trips and that the bicycle allowance is only given for the effectively commuting trips made with the bicycle.
Valuing the benefit: more administration
Every time you provide a company bicycle to an employee or manager, you must now estimate the amount of its benefit in order to comply with the new tax sheet obligation. The estimate must be based on the actual value of the benefit.
The circular gives examples and explanations of what specifically you need to consider when determining that actual value. Essentially, you should look at the purchase or lease cost of the bike, including the accessories and services (such as maintenance and insurance). You should also always include the VAT.
In the case of a purchase, you count the purchase price of the bike and accessories spread over five years. In the case of a lease, you count the rent paid by you as an employer on an annual basis.
In the case of a lease, you count the rent paid by you as an employer on an annual basis.
Implementation of the measure
The new fiche requirement applies to:
- All bicycles that you made available to an employee or manager since 1 January 2024. So even if you bought or leased the bike several years ago and still make it available now, the new tax sheet obligation applies
- All bike allowances that you have granted since that date
What info must you provide to Securex?
Do you make a company bike available to your employees or company managers? Then it is important that you inform us as soon as possible and before 31 October 2024 of the actual value of the benefit (if you have not already done so). You already had to do this if there was no commuting using a company bicycle, but must now also do so if there was commuting using it.
In the latter case, there is therefore no impact on payroll processing, but this way we can fill in the tax sheets correctly.
31 October 2024 is not an official date. We ask that you inform us of the amount of the benefit before this date so that we have the necessary information in time to prepare the tax sheets correctly.
How can Securex help you?
Would you like help with the valuation of this benefit? Or would you like more info on bike leasing in general? Our Consulting Legal team is at your service: consultinglegal@securex.be
Source
- Circular letter 2024/C/22 on the bicycle allowance exemption and the benefit arising from the provision of a company bicycle, as well as on the professional costs associated with the use of the bicycle for commuting
