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In the case of salary conversion, the employee receives a portion of the contractually agreed salary not in cash, but as a payment in kind for the period during which the company bike is made available.
This means that a change is made by means of a supplementary agreement to the employment contract, in which the employee's future salary is reduced by a fixed amount (conversion rate) for the duration of the transfer of use.
This then results in the tax and contribution benefit for the employee.
In most cases, the imputed income is also subject to taxation. This is added to the monthly gross salary.
What does this mean exactly?
Gross monthly salary
+ taxation of imputed income
- Leasing rate
- All-round protection costs
= new gross monthly salary
- Taxes
- Taxes
- Taxation of imputed income
= net monthly salary
If you now compare the net monthly salary without the company bike with the net monthly salary with the company bike, you get the monthly costs for the company bike leasing.
Below are some explanations of terms.
Conversion Rate:
The conversion rate is the sum of the leasing rate and the cost of the selected all-round protection package, less any cost coverage by the employer The gross monthly salary is reduced by this conversion rate.
Taxation of the imputed income:
Depending on the form of the transfer by the employer, the use of the company bike is subject to taxation of the non-cash benefit. If a company bike is also provided for unrestricted private use as part of a salary conversion, the non-cash benefit must be taxed.
The non-cash benefit from company bike leasing is calculated at a flat rate of 1% of a quarter of the gross list price (RRP) rounded down to a full €100, added to the taxable income and also taxed. This is also referred to colloquially as 0.25% taxation. The amount for the imputed income can be found in the calculation overview on the calculator page.
If the employee does not wish to purchase the company bike, it must be returned to us at the end of the agreement via a Lease a Bike specialist dealer.
Damage protection
Our damage cover includes all sudden and unforeseeable damage or destruction to the leased item, e.g. due to:
Europe-wide mobility guarantee
To maintain mobility, our company bicycles are covered by a Europe-wide mobility guarantee.
Benefits of the mobility guarantee
Maintenance Package
Employees choose between the basic, premium or all-inclusive package depending on the selected bike and usage. The basic and premium packages include an annual fixed budget, while the all-inclusive package has an unlimited budget. Repairs that are necessary for the operational safety of the bicycle are settled here. Tyre damage, as this is not a claim in the sense of an insurance-related loss, is also settled via the individual annual wear budget.
The budget per package is:
All packages include an inspection with extended scope of services outside of the required visual inspection. The costs for this are also settled via the allocated budget.
In the event that the employer discontinues continued payment of remuneration, e.g. if the employee leaves the company for a longer period due to illness, parental leave or other possible reasons, we will be happy to work together to find the best solution for all parties.
These may include, for example:
● Change of user. The employer offers the company bike to another colleague for the remaining term of the agreement. The employer takes all required internal measures for this. (e.g. supplementary agreements to the employment contract, handover of the company bicycle, etc.)
● Early termination of the existing leasing agreement by mutual agreement for an important economic reason with possible takeover of the used company bike by you as an employee. Optionally, you also have the option of financing the purchase price via our FINANCE A BIKE product.
● In the event of a change of employer, a transfer of the existing leasing agreement to the new employer is possible. After a credit check has been carried out, the agreement with all rights and obligations will be continued by the new employer and the company bike will continue to be provided to you for the remaining term.
● Return. If none of the above applies to your case, the bike must be returned to your employer. We will then discuss the details of individual processing with your employer.
In the case of salary conversion, you won't receive a part of the contractually agreed salary in cash, but as a payment in kind for the period of time during which the company bike is provided.
This means that a change is made by means of a so-called supplementary agreement to the employment contract, in which your future salary is reduced by a fixed amount (usually in the amount of the conversion rate) for the duration of the transfer of use.
This then results in a noticeable tax and contribution benefit for you. You can calculate what this will look like for your personal contribution situation here: Calculator
Claims can easily be submitted by the specialist dealer via our portal.
Note: In order to guarantee rapid processing of the claim, it is submitted exclusively by the specialist dealer.
Every Lease a Bike company bike receives an obligatory all-round protection package with an individually selected annual wear budget. All necessary repairs to restore operational safety as well as repairs due to wear and tear are charged to this account. The following wear parts, among others, are taken into account.
Reports can easily be submitted by the specialist dealer via our portal.
Note: In order to guarantee rapid processing of the claim, it is submitted exclusively by the specialist dealer.
Reports can easily be submitted by the specialist dealer via our portal.
Note on exchanging objects in the event of theft within the existing agreement with a bike of the same type and quality. The new bike only has to have the same purchase value, including accessories, as the stolen bicycle.
In order to guarantee rapid processing of the theft report, it is submitted exclusively by the specialist dealer.
Damage protection
Our damage cover includes all sudden and unforeseeable damage or destruction to the leased item, e.g. due to:
Europe-wide free mobility guarantee
To maintain mobility, our company bikes are covered by a Europe-wide free mobility guarantee.
Benefits include:
Maintenance Package
Employees choose between the basic, premium or all-inclusive package depending on the selected bike and usage. The basic and premium packages include an annual fixed budget, while the all-inclusive package has an unlimited budget. Repairs that are necessary for the operational safety of the bicycle are settled here. Tyre damage, as this is not a claim in the sense of an insurance-related loss, is also settled via the individual annual wear budget.
The budget per package is:
All packages include an inspection with extended scope of services outside of the required visual inspection. The costs for this are also settled via the allocated budget.
The company bike must be locked with, but not connected to, a commercially available brand-name lock, unless it is physically located in an enclosed area. Protection is provided 24/7. Damage/theft reports are to be made directly to us using a form. In the event of theft, a police report is mandatory (File number). Your employer as lessee must also be informed immediately in the event of a claim. You can fill out this notification of claim form on your own or together with your specialist dealer, who will be happy to assist you.
The statutory warranty is two years. After expiry of this period, damage e.g. to the drive or battery on pedelecs/e-bikes continues to be covered by our all-round cover during the term. Warranty and guarantee claims are always handled directly by the Lease a Bike dealer from whom the company bike was purchased.
A company bike and company car can also be used at the same time. The 1% method then applies to both the company bike and the car.
In contrast to a company car, the employee does not have to pay tax at 0.03 per cent per distance kilometre for the commute to work.
Electric bikes, the engine of which allows for a speed of more than 25 km per hour, are to be classified as motor vehicles in terms of traffic law and the assessment of the monetary benefit is to be carried out in the same way as for a company car.
If, according to the employment contract, more than one company bike can be used privately free of charge or at a reduced price, the benefit in kind resulting from the provision of the company bikes for private use is to be calculated for each company bike according to the 1% regulation.
The commuting allowance for journeys between home and place of work is generally to be granted at € 0.30/km regardless of the means of transport (§9 para. 1 no. 4 EStG).
The term of the contracts for company bikes is generally 36 months.
In the case of salary conversion, you won't receive a part of the contractually agreed salary in cash, but as a payment in kind for the period of time during which the company bike is provided.
This means that a change is made by means of a so-called supplementary agreement to the employment contract, in which your future salary is reduced by a fixed amount (usually in the amount of the conversion rate) for the duration of the transfer of use.
This then results in a noticeable tax and contribution benefit for you. You can calculate what this will look like for your personal contribution situation here: Leasing calculator
jcnew update45
Premature termination of a leasing agreement is allowed under certain circumstances during the contractually agreed period of 36 months. Please contact us and we will be happy to assist you! Contact
● The employee will receive an e-mail 4-6 weeks before the end of the leasing agreement informing him/her of the end of the period of use, which will include an offer to purchase the used company bike.
● If the employee accepts the purchase offer, he/she will receive an invoice confirming the taxation of the monetary benefit arising from the purchase in accordance with §37b para. 1 EStG [Income Tax Act] with takeover by us (flat-rate taxation by third parties).
● The employee can pay the purchase price by bank transfer/direct debit.
● Your company will also receive a copy of the invoice as proof that we have taken over the non-cash benefit in accordance with §37b para. 1 EStG.
If the employee does not wish to purchase the company bike, it must be returned to us at the end of the agreement via a Lease a Bike specialist dealer.
There is often a great deal of confusion about the meaning of these terms.
Residual value: This is a purely calculatory figure in leasing and is often confused with the purchase price at the end of the contract term.
Purchase price: This is the price at which the used company bike is sold at the end of the contract.
Market price: This refers to the price that is paid for a given good at a given time in a given market for a unit of that good.
In the absence of a current general second-hand market for bikes/pedelecs, unlike for motor vehicles, the Higher Tax Authority has set this market price at 40% of the recommended retail price gross after 36 months to simplify matters and in line with the depreciation table. However, it should be noted that in connection with the taxation of the pecuniary advantage, a lower value can be proven in the event of a difference between the purchase price and the market price.
In the event that continued remuneration is discontinued, e.g. leaving work due to prolonged illness, parental leave or other possible reasons, we are happy to work with you to find the best solution for you, up to and including an individual, cost-neutral return for you as the employer, provided that one of the following options is not possible or does not apply.
This can be, for example:
● Change of user: Offering the company bike to another employee for the remaining term of the agreement and taking all measures required internally for this purpose. (e.g. supplementary agreements to the employment contract, handover of the company bike, etc.)
● Early termination of the existing leasing contract by mutual agreement for an important economic reason with possible takeover of the used company bike by the employee. Optionally, the employee also has the option of financing the purchase price via our FINANCE A BIKE product.
● In the event of a change of employer, a transfer of the existing leasing agreement to a new employer is possible. After a credit check has been carried out, the agreement with all rights and obligations will be continued by the new employer and the company bike will continue to be provided to you for the remaining term.
Would you like more details about this? Please contact us and we will be happy to assist you! Contact
