Have you ever considered a company bike? It could be a smart investment for you! Especially in these times, staying active is crucial, and the good weather is on its way. Apart from keeping you active, there are tax benefits as well.

Did you know that an electric company bike brings even more advantages? ZZP-boekhouder outlines the pros and cons of a company bike for you.

Health Benefits

Many entrepreneurs often find themselves behind their desks, not getting much opportunity to exercise. Does this sound familiar to you? A company bike isn't such a bad alternative to the gym. A bit of relaxation during your day also helps you focus better. And perhaps you'll be even more cheerful?

Tax Benefits

Let's say you buy a bike for €1,210 including VAT (so €1,000 exclusive). You can offset the €210 VAT against your VAT to be paid. The €1,000 can be deducted as expenses over five years. This €1,000 is also activated on your balance sheet. Let's assume a 40% income tax rate. So, €1,000 means €400. The bike that cost you €1,210 now only costs you €600 net. Unfortunately, in 2022, you'll add 7% of the bike's value to your profit. You can deduct all costs, such as the lock, depreciation, bike insurance, maintenance, and repairs.

Even More Benefits

If you invest more in inventory in a fiscal year, you may have more benefits, namely through investment deduction. The condition is that you spend at least €450 exclusive of VAT per investment. If your total investments in inventory amount to €2,401 or more, exclusive of VAT, you're entitled to a 28% deduction for the KIA. You can include not only the depreciation of the bike in your costs but also the insurance and maintenance of the bike.

Electric Company Bike

An electric company bike might be interesting for you. In addition to the benefits mentioned above, there are extra 'bonuses' for electric bikes. Under certain conditions, you can benefit from the Investment Deduction and the Environmental Investment Deduction (In Dutch the MIA). For more information, contact your accountant and the tax authorities at 0800-0543.

Sale of Company Bike

If you sell the company bike within five years, the investment deduction will be partially reversed. In that case, you'll have a disinvestment deduction. The percentage you received at the purchase will be applied to the current lower selling price.