The Federal Ministry of Finance has published a decree on the tax treatment of the transfer of (electric) bicycles from the calendar year 2019 onwards (identical decrees of the supreme tax authorities of the Länder dated 9.1.2020 – 3-S233.4/187).
The decree makes statements on the assessment of benefits in kind as part of the salary with regard to the provision of a company bicycle for private use to an employee.
If the bicycle is provided by the employer to the employee for the first time after 31.12.2018 and before 1.1.2031, discounts are applied to determine the monthly average value of private use:
For 2019: Valuation at 1% of the halved recommended retail price including VAT at the time the bicycle is put into operation rounded down to a full € 100.
For 2020: Valuation at 1% of the quartered recommended retail price including VAT at the time the bicycle is put into operation rounded down to a full €100.
The allowance non-cash compensation pursuant to § 8 (2) sentence 11 EStG does not apply.
The provisions of the decree shall also apply to electric bicycles if they are to be classified as bicycles under traffic law (including but not limited to no registration and insurance obligation).
If an electric bicycle is to be classified as a motor vehicle under traffic law (e.g. if the motor also supports speeds above 25 km/h), § 8, Subsection 2, Sentences 2 to 5 i. in conjunction with § 6, Subsection 1, No. 4, Sentence 2 EStG must be applied for the assessment of the benefit in kind.