A company bike, how does it work?
If you are a registered business in the Netherlands and you use you bicycle for more than 10% of the time for business purposes, you can register your bike on to your company. The 10% in business trips is easy to reach, commuting from and to your work is already considered a business trip. Likewise, trips you make with your bike in order to meet your customers or to buy supplies are also considered business trips.
Tax benefits of owning a company bike
You can reduce your taxes by buying a new bike for your company. This is especially the case for bikes with a purchasing price of €450 (ex. VAT) or more. When a bike is more than €450 (ex. VAT) it is considered an investment, and for investments such as an expensive bike there are tax deductions, like KIA, MIA and VAMIL. More about those later.
When you lease a bicycle, you do not need to adhere to the rule of at least 10% business trips in order to register your bike for your company. Because when you lease a bike, the bike is already considered as a part of the assets of your company.
Depreciations for a company bike
An additional reason to buy a bike for your company is that you can deduct the depreciations of the purchase of your bike from your profits, which results a lower tax outcome. You do have to add 7% of the consumer price of the bike (incl VAT) to your taxable income, because the tax office considers the depreciations of a bike for your company as a part of your income. In the end, you pay less taxes when you buy the bike with your company by making use of the fiscal rules to support this.