Company bicycles have become a key benefit in salary packages, reflecting a growing trend towards sustainable mobility. Starting from the 2024 income year, significant changes in tax declaration requirements have been introduced to enhance transparency and ensure tax fairness. These changes will first impact the 2025 tax declaration process, requiring updates from January 2025 onwards. Here’s what you need to know about these new regulations.
Key Changes Effective for the 2024 Income Year
- New Tax Form Obligation:
- The benefit of using a company bicycle must now be reported on tax forms 281.10 (employees) and 281.20 (company directors). This regulation applies to the 2024 income year, with the first declaration due in the 2025 tax year (source: UCM).
- Elimination of Written Attestations:
- Previously, employees had to provide a written attestation confirming they were not opting for actual professional expense deductions to benefit from the tax exemption for the company bicycle. This attestation is now replaced by an automatic declaration based on tax form codes (source: Moore).
- New Payroll Code 41H6:
- A new payroll code has been introduced to record the tax-exempt benefit associated with commuting by company bicycle. This code ensures exemption from social security contributions and withholding tax while providing clear tracking for tax authorities (source: Acerta).
Impact on Employees
- Employees opting for the flat-rate deduction of professional expenses will continue to benefit from a tax exemption on the company bicycle benefit.
- However, those who choose to deduct actual professional expenses will be taxed on this benefit, which will be added to their taxable income (source: Forum for the Future).
Implications for Employers
- Calculating the Real Value: Employers must assess the real value of the bicycle benefit, considering the type of bicycle, accessories, included services (maintenance, insurance), and administrative costs.
- Payroll System Updates: Employers need to ensure their payroll systems are compatible with the new 41H6 code.
- Minimal Impact on Net Pay: These new obligations do not affect the gross-to-net salary calculation for employees. The main goal is to strengthen tax transparency.
Conclusion: A Step Towards Greater Transparency
These changes aim to simplify administrative processes for employers while ensuring tax fairness for all taxpayers. They also reaffirm Belgium’s commitment to encouraging sustainable transportation.
For more details on these new obligations, visit the official resources:
