0.25% rule for company bikes

19 January, 2020

The subsidy for company bikes has been adjusted again so that riding a company bike is now even more favorable for the employee. The highest tax authorities have ensured that the assessment basis for the taxable non-cash benefit for private use is now divided into quarters.

What does this change mean in concrete terms?

For employees who have been using a company bike since January 1, 2019, the assessment basis for the taxable non-cash benefit will be quartered as of January 1, 2020. If an e-bike worth €2,599 previously had to be taxed at €12 (0.5%) for private use via salary, now only €6 (0.25%) is to be taken into account for flat-rate taxation.

How long will this regulation apply?

The new regulation applies from Jan. 1, 2020, for company bikes first provided since Jan. 1, 2019, until Jan. 1, 2031. However, the change does not apply retroactively to company bikes taxation in calendar year 2019.

In numbers, this means:

Start of transfer of use before Jan. 1, 2010.

Calculation for the total leasing rate

Assessment basis = EIA

€ 2.599

rounded off to the nearest 100

€ 2.500

thereof taxable 1%

€ 25

Start of the transfer of use as of 01.01.2019

Calculation for 2019

halved tax base

€ 2.599/2 = € 1.299,50

rounded off to the nearest 100

€ 1.200

of which taxable 1%

€ 12

Calculation from 2020 for the remaining term

one quarter of the assessment basis

€ 2.599/4 = € 649,75

rounded off to the nearest 100

€ 600

of which taxable 1%

€ 6

Start of the transfer of use as of 01.01.2020

Calculation from 2020 for the entire term

one quarter of the tax base

€ 2.599/4 = € 649,75

rounded off to the nearest 100

€ 600

of which taxable 1%

€ 6


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