Company bike leasing allows employees to lease a bicycle through their employer and take advantage of tax benefits. The monthly cost depends on various factors, which we explain here in detail.
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Leasing Factor
- The leasing factor is a fixed value used to calculate the leasing rate.
- It is determined at the start of the individual leasing contract and is based on current interest rates.
- Basis: Purchase price of the bike including accessories x leasing factor = monthly leasing rate (excluding insurance).
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Salary Conversion
- In salary conversion, a portion of the gross salary is used to pay the leasing rate.
- Advantage: No income tax or social security contributions are due on this portion of the salary.
- Goal: Reduction of tax burden and social security contributions.
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Monetary Benefit
- During the leasing period, private use of the leased bike is taxed using the 0.25 rule.
- For purchase at the end of the term, the following applies:
While tax authorities assume a flat residual value of 40% of the new price after 36 months, the actual buyout price in practice is often around 18% of the manufacturer's suggested retail price (MSRP). This value is not a guaranteed or legally permissible assurance. The exact buyout price can only be determined at the end of the leasing period and depends, among other things, on tax regulations. The difference between these two values is considered a monetary benefit.- In this case, we from the bike leasing service handle the taxation so that the employee’s acquisition of the company bike remains tax-free.
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Calculating Leasing Rate and Net Cost
The leasing rate is the basis, but the key figure is the net cost, i.e., the amount by which the net salary is actually reduced.
- Leasing Rate = purchase price including accessories x leasing factor
- Salary Conversion = gross amount deducted from salary
- Net Amount = salary conversion minus tax and social security savings
Our leasing calculator is available for a sample calculation. For more precise information, please contact your employer directly.
Translation Note: This article has been translated using automatic translation software to provide the reader with a basic understanding of the content. Despite reasonable efforts to provide an accurate translation, we cannot guarantee its accuracy.
If there are any questions regarding the accuracy of the information in the translated article, please refer to the German version of the article, which is the official version.