Advantage of the company bike on the tax form as from income year 2024
What is it about?
A new reporting obligation has been introduced requiring the inclusion of the taxable benefit of company bikes on tax forms starting from 1 January 2024.
This new obligation stems from the Circular 2024/C/22 of 28 March 2024, issued by the Belgian tax administration.
Reminder (1): forms 281.10 / 281.20
The tax form 281.10 (for employees) / form 281.20 (for company directors) provides an annual overview of wages, as well as expense reimbursements and benefits in kind granted.
The tax form relating to income year 2024 must, in principle, be submitted by the end of February 2025 at the latest (the deadline and template form are to be communicated by the Federal Public Service (FPS) Finance). Pro-Pay will begin preparing the forms in January 2025.
Reminder (2): exemption for the company bike benefit
A company bike is made available to the employee (or company director) and is owned by the company or leased by the company.
Reminder: if certain conditions are met, the benefit of the company bike is exempt from taxation.
Only those whose professional expenses are determined on a lump-sum basis in their personal income tax return can benefit from this tax exemption (meaning the employee/director does not proof his actual professional expenses in the personal income tax return).
Therefore, there are no changes to the respective payroll processes regarding the company bike. This is purely an additional reporting requirement for inclusion on the tax form.
Tax form in 2025: inclusion of the company bike benefit
As from income year 2024, the benefit of the company bike must be fully reported on the tax form.
The benefit of the company bike must be determined at its actual value for the recipient of the benefit.
The actual value is the saving the employee/director realizes by having the bike provided free of charge by the employer/company.
The Belgian tax administration clarified in its Circular 2024/C/22 the elements to be considered when determining the actual value - namely: the nature, size, and value of the offer.
The benefit will naturally vary depending on the value of the bike and accessories, as well as the cost of associated services. In any case, this valuation must include VAT.
Employers or companies are responsible for assessing the benefit on a case-by-case basis, considering the actual circumstances and establishing the actual value for the recipients, which corresponds to their realized savings.
To start, you can consult your bike leasing company or dealer to determine the actual value of the company bike. Additionally, your accountant can assist in finalizing this valuation.
When the bike is provided to an employee under the legal mobility budget, the company bike benefit does not need to be reported separately on the tax form. Instead, the total amount of the mobility budget for the relevant year must be declared, i.e., the sum of its three pillars.
Time to act!
As in previous years, your payroll business partner will contact you in January 2025 to gather the necessary information for preparing the tax form.
At that time, you will also need to provide the actual value of the company bike.
To ensure a smooth process, it is important to start collecting this information now.
