Important
If you are providing a company bicycle for your employees or managers, it is essential to inform us of the actual value of the benefit (even if the bicycle is used for commuting).
If you have not done so yet, please provide us with this value as soon as possible and, in any case, before the first payroll calculation. This information is necessary for us to prepare the tax forms correctly.
While this measure does not affect payroll processing, we need the data you provide to fill in the tax forms accurately.
7 points to remember for 2026
- Tax and social benefits: the bicycle premium and the benefit of a company bicycle remain exempt from taxes and social contributions for employees and managers who choose flat-rate professional expenses.
- Increase in the maximum amount of the bicycle allowance: the exempt amount per kilometre will increase due to indexing starting January 1, 2026.
- Tax credit for the bicycle allowance: employers who increase the bicycle allowance are entitled to a tax credit for allowances paid between 2024 and 2026.
- Annual maximum: the bicycle allowance is exempt up to an annual maximum of 3,700 euros per employee.
- Mandatory bicycle allowance: since May 2023, the bicycle allowance has been mandatory according to collective agreement no. 164, unless there is another collective agreement.
- Tax declaration of company bicycles: the benefit of a company bicycle must be reported on the tax form starting in 2024.
- Stricter controls: the tax authorities are conducting stricter checks on bicycle allowances and company bicycles.
Tax benefit scheme for those opting for flat-rate professional expenses
The use of the bicycle for commuting is encouraged by a tax measure through:
- Exemption of the bicycle allowance
- And exemption of the benefit from providing a company bicycle
These two benefits can be combined. They apply to both employees and managers.
Since 2024, this exemption scheme for bicycles only applies to taxpayers who choose to deduct flat-rate professional expenses in their declaration. This aligns with other exemption schemes for reimbursing commuting costs.
For employees or managers who decide to account for the actual costs, both the bicycle allowance and the benefit from providing a company bicycle are taxable as professional income.
Increase of the exempt maximum amount of the bicycle allowance
Employees who commute by bicycle are entitled to a bicycle allowance. This allowance is exempt from tax and social security up to a certain limit.
On January 1, 2026, the exempt maximum amount will increase from 0.36 euros to 0.37 euros per kilometre. There is no maximum distance per day.
Social and tax exemption
This means that no payroll withholding tax or social security contributions need to be withheld as long as the kilometre allowance does not exceed the exempt amount of 0.37 euros per actual kilometre travelled by bicycle for commuting.
The part that exceeds the exempt amount will be added to the monthly salary to calculate the payroll withholding tax and social security contributions to be withheld.
Tax credit
To encourage employers to increase the bicycle allowance they pay to their employees, a temporary compensation in the form of a tax credit has been introduced. Employers who decide to increase their bicycle allowance will qualify for this tax benefit.
The tax credit is temporary and only applies to bicycle allowances paid for commuting during the period from January 1, 2024, to the end of 2026 and which are granted no later than December 31, 2027.
Learn more: "Tax credit for voluntary increase of the bicycle allowance"
New upper limit of 3.700 euros
Along with the increase of the bicycle allowance, a new annual maximum has been introduced in 2024. From this year, bicycle allowances that exceed this annual upper limit of 3.700 euros will also be taxed.
In other words, the total amount granted for bicycle allowances is exempt, for the tax authorities and for social security, up to a maximum of 3.700 euros per employee and per year.
If the annual threshold is exceeded, only the portion above will be taxed.
Bicycle allowance mandatory
The bicycle allowance has been mandatory since May 2023 according to collective agreement no. 164. This collective agreement is supplementary, so it only applies if there is no sectoral or company collective agreement that provides for a bicycle allowance (even if the amount is lower than that in collective agreement no. 164). The bicycle allowance in collective agreement no. 164 is 0.30 euros per kilometre (indexed amount) as of January 1, 2026.
The benefit of a company bicycle must be stated on the tax form
Social and tax exemption
When you provide a company bicycle to your employee for commuting, a tax-free social benefit arises for the employee.
Additionally, the private use of that bicycle does not generate a taxable benefit in kind as long as the bicycle is actually used for commuting.
Our advice
It is wise to have your employees sign a declaration confirming that they actually use the company bicycle for commuting.
Learn more about the exemption conditions: "Bicycle"
New bicycle reporting obligation
The benefit of a company bicycle must be reported on the tax form starting in 2024 (income year). This new obligation applies to all bicycles that you have provided free of charge to an employee or manager since January 1, 2024.
The new bicycle reporting obligation also applies if you purchased or leased the bicycle a few years ago and are still providing it.
As mentioned above, the benefit for company bicycles is now only exempt for employees and managers who choose to deduct flat-rate professional expenses in their tax declaration.
So if the tax authorities determine during tax assessment that your employee has opted for actual professional expenses, they will have all the necessary information to tax this benefit due to this new bicycle reporting obligation.
More info: "Benefit of company bicycle must be reported on tax form"
No impact on the payroll withholding tax
This new obligation does not affect payroll calculation. The benefit of the company bicycle remains exempt from payroll withholding tax, whether your employee opts for actual costs in their tax declaration or not.
The check to determine whether someone has opted for flat-rate professional expenses or actual professional expenses takes place during the tax phase and not in the preceding payroll calculation phase. In payroll calculation, you do not yet need to make this choice.
This change does require you as an employer to adjust administratively, as you now need to estimate the benefit for each company bicycle.
Learn more about what to consider in this estimation: "Bicycle"
Bicycle in the sights of the tax authorities
More and more Belgian companies are offering company bicycles. The bicycle seems to be a real asset to optimise salaries. This allows companies to promote the sustainable mobility of their employees while also benefiting from attractive tax incentives.
Our advice
If your company starts leasing bicycles, establish a clear bicycle policy. Make agreements about insurance, roadside assistance, theft, maintenance, and what happens if the employee leaves the company or is absent for a long time. Ensure that your employees know what to expect and document everything in a bicycle policy. Securex can assist you with this.
This has not escaped the attention of the tax authorities, who have increased their vigilance regarding bicycle allowances and benefits.
If you do not comply with the applicable rules, you may face administrative fines and default interests. The amount of these fines varies depending on the severity of the violation.
If you have incorrectly reported your bicycle allowances or if the tax-free maximum amount has been exceeded, you risk a tax reassessment. During an audit, the incorrectly exempted amounts will generally be reclassified as taxable remuneration, resulting in additional tax to be paid.
Our advice
If you provide bicycles to your employees and/or pay them a bicycle allowance, ensure that you comply with the applicable rules. In case of non-compliance, the tax authorities will systematically apply the legally prescribed sanctions.
How can Securex assist you?
Do you need help in determining the value of this benefit? Or do you want more information about bicycle leasing in general? Our Consulting Legal team is ready to assist you: consultinglegal@securex.be
