Annual exemption ceiling for bicycle allowance: new amount!

From 1 January 2024, an annual tax and social exemption ceiling of €2,500 has been introduced for the "home-work" cycling allowance.

This ceiling has just been raised.

Increase in the bicycle allowance exemption

The kilometre allowance paid to an employee or company director for journeys actually made between home and work on a bicycle, motorised bicycle or speed pedelec is exempt from tax within certain limits and subject to certain conditions.

As of 1 January 2024, the maximum amount exempted has been increased from €0.27 to €0.35 per kilometre travelled, with the introduction of an annual ceiling, initially set at €2,500.

This annual ceiling has just been increased to €3,500, with retroactive effect from 1 January 2024.

This exemption is automatic for withholding tax. The annual ceiling is controlled per employee and per employer. If either of these ceilings is exceeded, the excess will be treated as taxable remuneration. The bicycle allowance must be stated on the tax forms.

For personal income tax, the annual ceiling is controlled per taxpayer and per taxable period (calendar year).

The new ceiling also applies at social exemption level.

Sources: Law of 12 May 2024 containing various tax provisions, Belgian Official Gazette 29.05.2024, Royal Decree of 15 May 2024 containing amendments relating to withholding tax, Belgian Official Gazette 28.05.2024, Royal Decree of 21 March 2024 amending Article 19, § 2, 16°, of the Royal Decree of 28 November 1969 implementing the Law of 27 June 1969 revising the Decree-Law of 28 December 1944 on the social security of employees, as regards the basic amount and the ceiling of the kilometre allowance, Belgian Official Gazette 29.03.2024.