In the case of salary conversion, the employee receives a portion of the contractually agreed salary not in cash, but as a payment in kind for the period during which the company bike is made available.
This means that a change is made by means of a supplementary agreement to the employment contract, in which the employee's future salary is reduced by a fixed amount (conversion rate) for the duration of the transfer of use.
This then results in the tax and contribution benefit for the employee.
In most cases, the imputed income is also subject to taxation. This is added to the monthly gross salary.
What does this mean exactly?
Gross monthly salary
+ taxation of imputed income
- Leasing rate
- All-round protection costs
= new gross monthly salary
- Taxes
- Taxes
- Taxation of imputed income
= net monthly salary
If you now compare the net monthly salary without the company bike with the net monthly salary with the company bike, you get the monthly costs for the company bike leasing.
Below are some explanations of terms.
Conversion Rate:
The conversion rate is the sum of the leasing rate and the cost of the selected all-round protection package, less any cost coverage by the employer The gross monthly salary is reduced by this conversion rate.
Taxation of the imputed income:
Depending on the form of the transfer by the employer, the use of the company bike is subject to taxation of the non-cash benefit. If a company bike is also provided for unrestricted private use as part of a salary conversion, the non-cash benefit must be taxed.
The non-cash benefit from company bike leasing is calculated at a flat rate of 1% of a quarter of the gross list price (RRP) rounded down to a full €100, added to the taxable income and also taxed. This is also referred to colloquially as 0.25% taxation. The amount for the imputed income can be found in the calculation overview on the calculator page.
Dealer
Lease a Bike dealer
Lease a Bike dealer with online shop
With over 6,700 dealers you can easily pick up your bike around the corner. Your chosen bike dealer will also carry out any future maintenance or repairs.
Theft and damage cover
Employees can choose between the Premium and All-inclusive options and opt for either time or replacement value insurance. In both cases, the bike only needs to be locked.
Our damage coverage includes all sudden and unforeseeable damage to or destruction of the leased property, such as by:
Free Europe-wide mobility guarantee
To maintain mobility, our company bicycles are covered by a free Europe-wide mobility guarantee.
Benefits include:
**from a distance of 10km from your permanent residence
Inspection
Employees can choose between the Basic, Premium or All-inclusive options according to their individual requirements, regardless of the selected variants for theft and damage protection or wear and tear.
A maximum of one inspection can be carried out per leasing year.
*Note: The costs of the inspections are capped: The inspection in the basic and premium variants can be billed up to a gross amount of €85.00. The costs in the all-inclusive variant can be billed up to a gross amount of €115.00 each. If the available budget is lower, the inspection will be invoiced up to this amount. Any additional inspection costs are to be borne by the lessee or user.
Wear & tear
With regard to the wear and tear budget, employees can also choose the right variant for them from the Basic, Premium or All-inclusive options.
The wear and tear budget per leasing year is
It is not possible to carry over the unused budget to the following leasing year.
Our theft & damage cover includes all sudden and unforeseeable damage or destruction to the leased object, e.g. due to:
Please note which theft and damage protection option the user has chosen: If the user has selected the all-inclusive option for theft and damage protection as part of the all-round cover, the new value insurance applies. The Lease a Bike company bike is then insured against theft around the clock if the company bike was locked. It will be replaced at replacement value and an object exchange will be made in the existing contract. As a rule, it is not necessary to terminate the existing contract.
If the user has selected the premium option for theft and damage protection as part of the all-round cover, the current value insurance comes into effect. The Lease a Bike company bike is then insured against theft around the clock if the company bike was locked. However, the leasing contract is then terminated and the bike is not replaced.
The statutory warranty is two years. After this period, damage, e.g. to the drive or battery on pedelecs / e-bikes, is still covered by our all-round protection during the term. Warranty and guarantee claims are always processed directly via the Lease a Bike specialist dealer from whom the company bike was obtained.
A company bike and company car can also be used at the same time. The 1% method then applies to both the company bicycle and the car.
In contrast to a company car, the employee does not have to pay tax at 0.03 per cent per distance kilometre for the commute to work.
Electric bicycles, the engine of which allows for a speed of more than 25 km per hour, are to be classified as motor vehicles in terms of traffic law and the assessment of the monetary benefit is to be carried out in the same way as for a company car.
If, according to the employment contract, more than one company bicycle can be used privately free of charge or at a reduced price, the benefit in kind resulting from the provision of the company bicycles for private use is to be calculated for each company bicycle according to the 1% regulation.
The commuting allowance for journeys between home and place of work is generally to be granted at € 0.30/km regardless of the means of transport (§9 para. 1 no. 4 EStG).
The term of the contracts for company bikes is generally 36 months.
Company bikes with electric motor assistance can be divided into two categories: 1. Pedelec or E-Bike and 2. S-Pedelecs. The term "e-bike" is often used as a synonym for pedelecs.
With the Pedelec (Pedal Electric Cycle), the driver is assisted when pedaling by an electric drive (max. 250 watts) up to a speed of 25 km / h. It is legally considered a bicycle, is allowed to ride on cycle paths and does not require a permit or a driver's license. There is no obligation to wear a helmet.
The S-Pedelec (fast pedelec) as a company bike is functionally comparable to the Pedelec, but the driver is supported by the electric motor (max. 500 watts) up to 45 km / h.
Since an S-Pedelec is classified as a moped, legal requirements apply:
Helmet compulsory (§ 21a paragraph 2 StVO)
Insurance indicator
Moped test certificate
Road driving requirement
Road traffic, except when the cycle path is cleared for motorized two-wheelers by signs, it is outside a built-up area or when the engine is switched off.
If an S-Pedelec is left as a company bike, the one-way trip to the first place of work (Section 8 (2) EStG) must be taxed at 0.03% of the gross list price per kilometer.
S-Pedelecs are therefore excluded from leasing.
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