Using an o2o lease bicycle offers many benefits, both tax-related and practical. But what exactly is the situation for fixed professional expenses? And what impact does this have on your employees?
Fixed professional expenses versus actual professional expenses
When completing your annual tax return, it is important to know that there are two options:
Fixed professional expenses
This standard deduction is designed to cover average work-related expenses without having to prove exact amounts.
Actual professional expenses
This is where you prove the actual expenses you incur for work. This is more complex and not more beneficial financially.
Impact for employees with a lease bicycle
o2o adds an addendum to the employment contract, with the following clause:
"The employee explicitly undertakes not to prove the actual professional expenses in the annual personal income tax return, but to declare the fixed professional expenses each time. If the employee does declare actual expenses, then they will be fully liable for any adverse financial consequences."
Points to bear in mind
If your employee decides to declare their actual professional expenses on their tax return, they will lose the tax benefits of the lease bicycle and bicycle allowance.
In most cases, the actual expenses are lower than the statutory fixed amount, making it more advantageous to opt for the fixed amount system.
This decision and any adverse financial consequences lie entirely with your employee. No additional costs will be charged to the employer.
For more information and detailed explanations on the tax rules of commuting by bicycle, please consult the official page of the FPS Finance.
Do you still have some questions?
If so, feel free to contact our helpdesk. We will be glad to help you further.