Dutch Tax Administration clarifies rules for multiple company bicycles

Under the current tax scheme, employees can use the taxable benefit of 7% of the list price for a second company bicycle as well as their first. Nieuwsfiets reports this based on information from Lease a Bike, after the Dutch Tax Administration confirmed to the company that the scheme also applies to multiple bicycles provided by an employer for business and private use.

According to Nieuwsfiets, employers may provide a second bicycle if the scheme's conditions are met. Employees are taxed on 7% of the list price per year for both the first and the second bicycle. Both bicycles must also be used for business journeys. A bicycle used exclusively for private purposes, such as recreational weekend rides, does not qualify.

Lease a Bike gives the example of an employee using a cargo bike on some days and an e-bike for commuting on others. In theory, the scheme could also apply to a third or fourth company bicycle. According to Nieuwsfiets, however, the Dutch Tax Administration considers it unlikely that the business-use conditions would still be met in such cases.

This clarification is useful for employers, particularly because cycle schemes are still relatively new to many businesses. Employers are often familiar with company-car rules and how to organise them internally. The arrangements for company bicycles are less familiar. They raise questions about use, provision, private journeys and the practical design of a cycle scheme.

The subject also touches on mobility policy. Encouraging employees to cycle involves more than the scheme itself. Facilities at the workplace must also suit the way bicycles are used. This means sufficient cycle parking, secure storage, space for different types of bicycle and charging facilities for e-bikes.

Our mobility studies regularly show that cycling is relevant not only for commuting, but also for business journeys during the working day. This makes clarifications like this practically useful. Not because every employee immediately needs several company bicycles, but because cycle schemes are gradually becoming a more established part of employers' mobility policies.

Particularly where car parking is scarce or expensive, it pays to look beyond car parking spaces and consider which mobility solution actually meets employees' needs. Sometimes a reserved car parking space makes sense. In other cases, a well-designed cycle scheme combined with good cycling facilities may be a better fit for daily use.

Source: Nieuwsfiets.nu