The 2023 bike plan gives you the opportunity to buy a nice, new electric bike at a low cost. Buying an electric bike through the employer's bicycle plan is the ultimate outcome for better fitness and a cleaner environment. There are several ways to purchase an e-bike with tax benefits. The two best-known forms of the 'bicycle plan', as the scheme is still popularly called, are:
● Nationale Fiets Plan (NFP)
Through the National Cycling Plan, you can buy a new electric bike with tax benefit once every three years through your employer. How does the new bicycle plan work? You pay for the electric bicycle of your choice with your gross salary. Because you pay with your gross salary, you do not have to pay income tax. This gives you a maximum 52% tax advantage on a maximum amount of €749. On the remaining purchase amount, you get no tax benefit and have to pay net.
For more information on the National Cycling Plan read on the website of Nationale Fiets Projecten.
● Working expenses scheme (WKR)
An alternative to the National Cycle Plan is the Working Cost Scheme. Under the WKR, your employer provides a tax-free travel allowance or interest-free loan. Within the Work Allowance Scheme, the employer may spend up to 1.2% of the total taxable wage on untaxed allowances and benefits in kind for employees. This includes annual Christmas hampers and staff outings. The employer can reimburse or provide a bicycle without restrictions within the so-called lump-sum allowance of 1.2% of the
wage bill. There is no maximum purchase value under the Working Expenses Scheme.
Specifically, your employer can determine the budget for your new e-bike. As an employee, you are eligible for a travel allowance of €0.19 per kilometre. This is also allowed if you live within a 10-kilometre radius of your work and come by bike. With this kilometre allowance, you can finance your new electric bike. Within this scheme, an employee does not have to prove that the electric bike is used for commuting.
Where can I find more information on the working expenses scheme?
For more information on the Expense Allowance Scheme read on the website of
Werkkostenregeling.
