The tax benefit extended to fast electric bicycles

The reclassification of high-speed electric bicycles as mopeds by the end of 2016 could risk the tax benefits for which they were eligible.
The council of ministers therefore decided on Thursday to classify fast electric bicycles or ‘speed pedelecs’ as bicycles, with retroactive effectiveness from 1 January 2017.

Thanks to the proposed legislative amendment, the bicycle allowance of € 0.23/km for travel between home and the workplace has been extended to speed pedelec users.

In recent years, electric bicycles have become increasingly efficient and are frequently used to commute between home and the workplace. One out of every three bicycles that is sold today is already equipped with electric assistance. In addition to conventional electric bicycles that can reach speeds of up to 25 km/h, there are also two-wheelers, known as speed pedelecs, which can reach 45 km/h.

In addition to the tax exemption for the bicycle allowance in the context of travel between home and the workplace, employers who make available a speed pedelec will also be able to benefit from 120% deductibility for corporate tax. A worker who receives a speed pedelec made available to him by his employer will not be taxed on benefits in any way.

Implemented by the Minister of Finance, Johan Van Overtveldt, the measure is included in the preliminary draft law “Miscellaneous Tax Provisions”.

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