Is bike leasing a benefit in kind?
No, a leased bicycle is not considered a benefit in kind (VAA) for employees. If you lease a bike through your employer and also use it privately, it is not taxed as an additional benefit. This makes bike leasing interesting from a tax perspective for both employers and employees. Brilliant, isn’t it?
Why is bike leasing not a benefit in kind?
The Belgian government promotes sustainable mobility and wants to encourage the use of bicycles for commuting. That is why there is a tax exemption for bicycle leasing. This means that employees do not pay additional taxes on the private use of the leased bike. Employers can also deduct the cost of bike leasing for tax purposes, which also makes it attractive for them.
The fact that bike leasing is not a benefit in kind makes it particularly attractive for tax purposes for both employees and employers. Thanks to this scheme, you enjoy a low-cost, environmentally friendly way to travel, without any additional tax burden.
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Frequently asked questions
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Yes, you can also use the leased bike you get through your employer in your private life, and it won’t be considered a taxable benefit. Whether you cycle to work, run errands or cycle in your free time, there is no additional taxation.
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There is no legal minimum number of times you must commute by lease bike in order to benefit from the tax exemption. The key requirement is that the bike is available for commuting, even if you also use it for private purposes.
That said, some companies do set a minimum number of commuting days in their internal bicycle policy to ensure the bike is effectively used for work-related travel.
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Yes, there are important differences. A company car is indeed considered a benefit in kind and subject to taxes, while a leased bicycle is completely exempt from BIK. Moreover, the cost of a leased bike is usually lower and contributes to a more sustainable mobility policy.
