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Company bicycle instead of company car

Healthy, good for the environment and stress free! With a company bicycle model (“Job-Rad”) employers can support their employees to increasingly switch to a healthy and environmentally-friendly mode of transport both for commutes as well as private travel. The CycleCompetence members klimaaktiv mobil (BMNT) und Herry Consult are publishing helpful tips on the subject and an expert opinion on the question of private use (“Sachbezug”).

The company can provide employees with a “company bicycle” which can also be made available for every-day private use. In turn the employee pledges to use the bicycle to commute or for work-related journeys as often as possible. For this the company can apply for attractive subsidies (e.g. the klimaaktiv mobil subsidy for e-bikes). The employee pays for the remaining costs e.g. via a monthly “usage fee” in 48 monthly instalments.

Taking part is easy: Switchover in five steps

  1. Company informs employees
  2. Employees chose the bicycles they want
  3. Company buys bicycles and gives them to the employees as company bicycles
  4. Employee pays a monthly fee for using the bike
  5. After four years the employees are buying the bicycles from the company for a symbolic price of 1 Euro

Tax assessment

The energy region Vorderwald in Vorarlberg is a pioneer when it comes to “Job-Rad”: It was here that the first “Job-Rad” campaign was offered for the whole region. It was combined with test campaigns (folding bike and e-bike). The province of Vorarlberg also commissioned this expert opinion from an accounting firm. It shows that no income tax has to be levied on company bicycles also used in private as they do not count as part of the salary (“Sachbezug”). You can find more information on this compiled for the Radlobby campaign “Cycling to Work”. (LINK).

FAQ

How is the monthly usage fee handled?
Normally it is deducted from the salary. The company can also provide bicycles for free. In this case no tax has to levied for “Sachbezug”.

What, if the employees leave the company or go on maternity leave/sabbatical?
In a “leasing agreement” between the company and the employee it is set down that the employee can pay the company the remaining instalments as an advance. But the bicycle remains property of the company for 48 months under the klimaaktiv mobil subsidy agreement.

Does the “Job-Rad” necessarily have to be an e-bike?
No. It can also be a “normal” bicycle or a folding bike.

Can a company claim a pre-tax deduction when purchasing the bicycle and then use the net purchase price as a basis to calculate the monthly instalments?
If the company is entitled to deduct input tax this is currently only possible with “normal” bikes but not with e-bikes.

Can the employees choose any bicycle as a “Job-Rad”?
No. A “Job-Rad” has to be road-ready (i.e. compliant with the Austrian road code “StVO” with mudguard, light system).

What happens after the employer has made the bicycle available for four years?
The employee can purchase the bicycle for a symbolic price of 1 Euro.

Does the employee have any commitments?
Employees pledge to use the company bicycle as often as possible to commute and for work-related journeys.

Where/When are the conditions for the “Job-Rad” set down?
Employees are signing an agreement of use with the company in which the framework is set down.

You can find all additional information (in German) www.jobrad.at

Fotos: pd-f.de ; Bleker GmbH

Posted on May 4, 2018