The renewed taxation of the company bicycle: what do you need to know in 2025?

However, as of 01/01/2024, several important changes have been implemented through the law of December 22, 2023, and explained in circular 2024/C/22. The conditions for a tax exemption have been tightened, new ceilings for the bicycle allowance have been introduced, and mandatory inclusion on tax forms is now required.

In this article, we explain the current tax regime for the company bicycle, along with the main changes in 2025.

Exemption for the benefit of the company bicycle

If an employee or company director effectively uses a company bicycle for commuting, the free provision of this bicycle is not considered a taxable benefit in kind.

Since January 1, 2024, this exemption is, however, subject to stricter conditions:

• The exemption now only applies to taxpayers who opt for the flat-rate system of professional expenses and not to those who prove their actual professional expenses.
• The benefit in kind resulting from the free provision of the bicycle must be included on form 281.10 (for employees) or 281.20 (for company directors). The benefit in kind must be mentioned on the form regardless of whether it is ultimately taxable.

Calculation of the benefit in kind

The benefit of the free provision of the company bicycle is calculated based on the actual value of the bicycle.

• Purchased bicycle: acquisition value divided by 5 (lifespan), increased by additional costs such as maintenance, insurance, etc.
• Leased bicycle: full rental price of the bicycle, including VAT.

Exemption of the bicycle allowance

In addition, new ceilings and conditions for granting bicycle allowances to employees or company directors have been introduced.

• The base amount of the mileage allowance is indexed to 0.36 euros per kilometer in 2025.
• From the 2025 tax year, an annual exemption ceiling is introduced per taxpayer. In 2025, this indexed ceiling amount is 3,610 euros per year.
• Only the portion of the bicycle allowance that falls within the legally established limits is exempt from tax. The portion that exceeds these limits is considered taxable professional income.

Here too, the exemption only applies to taxpayers who opt for the flat-rate system of professional expenses, and not to those who choose to prove their actual professional expenses.

Tax consequences and declaration

The mileage allowance and the benefit in kind are exempt from taxes and no withholding tax is due if the above conditions are met.

The obligation for a written declaration in which the employer confirms that they will apply the flat-rate expense system in their tax return has been abolished since 2024. The control is now carried out in the income tax via the tax forms.

Practical points for entrepreneurs and accountants

• Accurately record the use of the bicycle for commuting. This forms the basis for calculating the mileage allowance.
• Document all costs related to the purchase or lease of a bicycle. This way, the benefit in kind can be correctly calculated.
• Keep an eye on the ceiling of 3,610 EUR when granting bicycle allowances to avoid additional taxes.
• Do not forget to include the benefit for the company bicycle in form 281.10 or 281.20.
• Clearly inform company directors about the consequences of their choice between flat-rate or actual professional expenses. This has direct consequences for their right to tax exemption.
• Check which joint committee is applicable: specific and deviating rules apply depending on the joint committee.

Our PKF BOFIDI experts are happy to help

Do you have questions about the renewed taxation of the company bicycle? Contact our experts, they will be happy to help you.

This article was written by Hanna Matthijs.