Most service cyclists starting in 2019 are not exempt from tax

The Federal Finance Committee has decided to adopt a new regulation concerning the taxation of service bicycles and service electric bicycles from 2019. The announced tax exemption will reward the environmental commitment of employers and employees. However, the model does not meet the needs in practice – the current legislation excludes the majority of service cyclists from the regulation, as highlighted by the press service bike.

By deciding to exempt service bicycles and electric bicycles, the Bundestag wants to better support environmentally friendly employers and employees. However, the law in force does not concern the majority of users concerned. The tax exemption is only perceived by service users whose employer takes over the service wheel "in addition to the wages already owed" (new version § 37, No. 3, EStG).

Image: www.abus.de | pd-f

"The criterion of additionality regulated by law must be highlighted and considerably limits its scope of application."Explains the tax specialist Oliver Hagen of the law firm HSB in Berlin.Leasing models commercial, such as: Jobrad, on the other hand, are based on salary conversion.This means that the employee gives up part of that the new tax exemption is not applicable.For most of the more than 250 000 company cyclists throughout Germany, known taxation under the 1% rule.

Salary conversion converts part of the wage claim into a benefit. This reduces the taxable income of the employee and the employer. The monetary advantage of the benefit is added to the salary with one percent of the recommended retail price for the bike or electric bike for the purpose of calculating the tax, the rate of leasing generally retained by the # 39; employer. The basis of taxation for this is a decree of the Länder Finance Ministries of 2012.

Image: www.jobrad.org | pd-f

"It is very unfortunate that the current bill excludes tax exemption for most employees who use a service bike. Effective tax relief will only be effective if the 2012 tax break, which is still valid for the vast majority of business users, is adjusted"Says Holger Tumat, managing director of the market leader in business leasing, Jobrad.

Drivers of electric cars are technically liable for the tax

In addition, a simultaneous change of § 6 EStG drivers of electric cars rented from 1 January 2019 with the new rule of 0.5% is promoted, so the basis of calculation for calculation following the famous 1-Prozent Rule reduced A half. Cyclists and electronic cyclists, on the other hand, when the employer withholds part of the gross salary to apply the leasing rate, must continue to pay the tax on the pecuniary benefit for private use at one percent of the recommended retail price.

Image: www.flyer-bikes.com | pd-f

"This means that service bicycles and e-bikes are worse off than electric cars. For us, it's incomprehensible that an SUV with Alibi-hybrid tax relief, but not bikes or pedelecs. This can not really be the intention of the legislator for more respect of the environment"Said Tumat.

Only the small group of S-Pedelec drivers (engine badistance up to 45 km / h) will benefit from the 0.5% rule as of 2019, their moped being taxed as an electric car. Therefore, Tumat hopes a quick adjustment of bicycle and VAE drivers on the "discount level" of state tax authorities, so that they benefit from the new 0.5% rule: "All the rest would be symbolic politics."

All the rest would be symbolic politics.Holger Tumat

The bicycle industry looks forward to the action

In general, the CEO of Jobrad welcomes the proposed EU law and the SPD: "We are pleased that the sector has been listed for the first time on the agenda of federal legislation."Other industry representatives also commented positively, although improvements are still needed. Finally, casual employers would badign a full bike to occasional business riders and would thus benefit even from the new regulations.

Image: www.r-m.de | pd-f

"We welcome the decision of the Bundestag to introduce the tax exemption of the monetary benefit for bicycles and electric bicycles. It's an important and positive sign in the first stageFor example, it is expressed by Heiko Müller, founder and managing director of Riese & Müller Steffen Alberth, sales and service director of the Winora group, adds: "We view this decision as a clear sign of sustainable and environmentally friendly means of transportation, such as cycling and electric cycling. Such incentives help us in the long term to achieve climate goals, fight congestion and parking defects, while boosting sales in the bicycle industry."

Other subject: Infrastructure

However, the potential increase in cycling staff also results in increased demand for infrastructure – both in businesses and in municipalities. The increase then means an increased need for infrastructure measures, for example. B. in Fahrradabstellanlagen safe and protected from the elements.

Image: www.wsm.eu | pd-f

"All the more so that it can be badumed that the majority of users will opt for high quality wheels in the context of the financial benefits of service cycle regulation", Refers to Andreas Hombach of the WSM bicycle parking system provider, who in general expects a general change in employee mobility behavior when companies recognize the economic benefits of cycling and create the good infrastructure.

"The cost of bicycle parking facilities is certainly lower than that of parking spaces. Liberated areas can also be used by companies elsewhere", Says Hombach.To succeed in a change of traffic, there are still many possible tax benefits.

Plus also directly to the press service bike.