In 2024 the maximum tax-free bike allowance changed. The government also implemented a tax credit for the bike allowance. Let’s have a look what this is all about.
General
The maximum tax-free bike allowance in 2024 is 0,35 cents/km. From 2024, bike allowance will only be tax-free if you prove your professional expenses on a flat-rate basis. So if you deduct your actual professional expenses, this is no longer possible. A maximum of 3.500 kms per year can be paid out tax-free to the employee. It is important to also always consult your joint committee for any stricter rules.
To encourage bike usage even more, the government implemented a tax credit. The tax credit is given to employers that voluntary increase their bike allowance. In this way the cost increase of the bike allowance is compensated by a lower taxable income, and thus less taxes to pay. The tax credit is given on the difference between the voluntary increased bike allowance and the allowance on the 1st of June 2023. The bike allowance on the 1st of June 2023 is called the reference allowance. The tax credit is only given on a difference of max 5 cents. Underneath is an example to clarify things.
A company in Paritair Committee 200 gave their employees on the 1st of June 2023 a bike allowance of 20 cents/km. On the 1st of February 2024 the company decides to increase te bike allowance with 5 cents/km, until 25 cents/km tax free. The company employees rode in 2024 between February and December a total amount of 10 000 km. The calculation is as followed:
(0,25 - 0,20) x 10.000 = 500 euros.
The tax credit is implemented until the end of 2026. The following conditions must be met to be able to ask the tax credit in your tax declaration:
- Voluntary increased;
- Borne by the employer;
- Unlimited in time;
- A minimum of 18 cent needs to be given.
CAO164
Companies that didn’t have a bike allowance before the 1st of May 2023, follow the CAO164 regulations. The maximum bike allowance for these companies is 0,28 cents/km (2024), with a maximum of 40 kms per day per employee tax-free.
Also these companies can ask for a tax credit in their tax declaration. The CAO164 tax credit differs a bit from the general tax credit.
The tax credit is given on the difference between the mandatory increased bike allowance and the allowance on the 1st of July 2022. The bike allowance on the 1st of July 2022 is called the reference allowance. The reference allowance will be 0, as there was not yet a bike allowance within the company. The tax credit is only given for a maximum of 40 kms per employee. This tax credit can be asked for the period from the 1st of May 2023 until the end of 2024. Underneath is an example to clarify things.
A company in Paritair Committee 333 gave their employees on the 1st of July 2022 no bike allowance. From the 1st of May 2023 the company must give a bike allowance of 27 cents/km. In 2024 a bike allowance of 28 cents/km is mandatory. The company employees rode between May 2023 and December 2023 a total amount of 7.500 km and in 2024 a total amount of 17.500 km. The calculation is as followed:
(0,27 - 0) x 7.500 + (0,28 - 0) x 17.500 = 6.925 euros.
Important is that the cost of the bike allowance must be borne by the employer. The companies under CAO164 can not only ask this tax credit, but also the tax credit described earlier above. This if they are complementary with each other.
