New "0.5% rule" for company bicycles and pedelecs: Why all business cyclists will benefit in the future - New opportunities for employer branding
Freiburg / Breisgau, March 15, 2019 - The tax authorities have used tax relief to ensure that all forms of hiring out bicycles are now tax-subsidized. "The new regulation of duty bike taxation is a milestone for a sustainable change in mobility," says JobRad CEO Holger Tumat.
Strong signal per service bike: For bicycles and pedelecs, the assessment basis is halved, according to which the amount of the taxable monetary benefit for private use is calculated. The new tax treatment of the provision of (e-) bicycles - the new "0.5% rule" - regulated by the highest financial authorities of the federal states by decree - leasing service bikes become even more attractive for employees in the event of a salary conversion. Compared to conventional purchase, savings of up to 40 percent are now possible.
New "0.5% rule" for company bicycles and pedelecs - duty bike taxation from 2019: When does which rule apply? (Infographic: JobRad)
The new regulation applies to all new bike leases concluded between January 1, 2019 and December 31, 2021. JobRad welcomes the decision of the tax authorities, which takes into account the political will for more sustainable mobility: "The new regulation is a real milestone," said JobRad managing director Holger Tumat. "All employees who receive their bicycles or pedelecs from 2019 via salary conversion will benefit from it."
New tax relief completes federal law
Last year, the Bundestag passed tax exemptions for commercial bicycles - if they are made available by the employer in addition to the wages owed anyway. However, the fully employer-funded job bike is still the exception: "Even if more and more companies are contributing to the costs, taxation is currently only being waived for a small number of service bike users," explains Holger Tumat. That is why JobRad has been campaigning for the new regulations at the political level in recent months, which will benefit all service cyclists. Holger Tumat: "The factual halving of the 1 percent rule corresponds to the tax equality that we demand for tax equality of company bikes with company e-cars, which have also been taxed at only 0.5 percent since the beginning of the year. We are very happy that everyone is now Job cyclists - regardless of whether the employer finances the service bike or not - benefit from the will of politicians for more environmentally friendly mobility. "
Example calculation: This is how the new "0.5% rule" works
A boss provides her employee with a leasing service bike worth 3,000 euros (gross list price) for which he converts part of his gross salary. For private use, the employee has a monetary benefit that continues to be taxed monthly at one percent of the gross list price. What is changing now? Previously, the employee had to pay EUR 3,000 * 1% = EUR 30 per month as a monetary benefit. As of now, the assessment basis of the taxable non-cash benefit is halved. This means that the employee only has to pay tax on half of 3,000 euros, ie 1,500 euros * 1% = 15 euros per month, which corresponds to a 0.5 percent taxation. With an exemplary tax rate of 35 percent, this means an additional saving of EUR 189 in 36 months.
JobRad employers and their employees will soon receive comprehensive information on the new tax situation. The attached graphic explains when which rule applies when taxing the service bike. Here is the link to the new tax relief: https://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Themen/Steuern/Steuerarten/Lohnsteuer/BMF_Schmachen_Allgemeines/2019-03-13-gleich-lautende-erlasse-steuerliche-verarbeitung-der -ueberlassung-of-electro-bicycles-anlage.pdf
Not only employees, but also the self-employed, freelancers and tradesmen have benefited from advantageous duty bike taxation since the beginning of the year. An overview of all tax regulations is available at www.jobrad.org/steuer.
Sign up free to join
Get full access to the hospitality industry news
-
Latest News
-
Collaboration between WebBeds and TAT for 'IMPACT' Event in Bangkok
-
Cross Hotels & Resorts Emerges as Top APAC Hotel Operator: 5 Key Reasons
-
Business Leaders in the UK Call for the Scrapping of £3.5bn Apprenticeship Levy
-
Mandarin Oriental arrives in the Balearic Islands with a refreshing breeze
-
New experiential boutique hotel set to debut in Petaluma, California