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Every employer can provide its employees with a company bicycle for private use free of charge or at a reduced price. The resulting benefit in money’s worth is then part of the taxable wages.
So-called pedelecs are operated with a max. 250 watt motor and are limited to a speed of 25 km/h. These bicycles do not have to be registered or insured and are classified as bicycles under traffic law. Therefore, the same conditions apply under payroll tax law as for a normal bicycle without motorization.
The S-pedelecs can reach speeds above 25 km/h (up to 45 km/h, motorization 250 watts +) due to assisted motorization. For this reason, these bicycles are treated as motor vehicles and the taxation is based on the regulations of company car taxation. Therefore, the surcharge of 0.03% of the list price per distance kilometer for the trips between home and the first place of work must also be taken into account as a non-cash benefit.Read more