Company Bike Scheme Netherlands
Ways of encouraging bike use per January 1, 2020
As of January 1, 2020, the tax scheme for company bikes has changed and it is now easier for employees to benefit from a company bike.
A company bike or (electric) bike will be provided by the employer for commuting. The employee does not have to buy a bicycle and can use the bicycle of the company for unlimited private use.
The employer pays the bicycle and usually also the costs for maintenance and repair. The employee pays the income tax on the value of the bike. The tax is 7% over the recommended retail price of the bicycle and accessories (including VAT) per year. The employee will pay this tax per month, visible on the payslip.
- The employer may ask the employee for a monthly personal contribution. This amount will then be deducted from the tax, however this is up to company decision.
- The employer may also choose to pay the monthly tax. This is only possible by using the Work Related Expense scheme [WKR -Werkkostenregeling]. In that case the employee does not have to pay tax at all.
Please note: in case the employee uses a company bike, certain travel allowances are not applicable, such as the mileage allowance of EUR 0.19 per kilometre.
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