Lease Bike and Tax Addition: What does this mean for you as a Self-Employed Professional?
More and more self-employed individuals are choosing to lease a bike. It’s not only healthy and sustainable but also fiscally attractive. As a self-employed professional, it’s important to understand the tax rules surrounding the tax addition (bijtelling) for a lease bike.
What is tax addition and does it apply to self-employed individuals?
Tax addition is a tax rule that applies when you use a company-provided product for private purposes. For employees, the tax addition is automatically handled through payroll administration. For self-employed individuals, it works differently: you need to keep track of your income and private use yourself and report this in your tax return.
Tax addition for lease bikes for self-employed individuals
For lease bikes, a tax addition rate of 7% applies, and this percentage is applied to the retail price of the bike itself. This means you must include 7% of the bike’s value as private use if you also use the bike privately.
If you use the bike exclusively for business purposes, you do not have to pay tax addition.
Example Calculation
Suppose you have a lease bike with a retail price of €2,500:
- Annual tax addition (7% of €2,500): €175
You must include this amount as private use in your income tax return.
Note: the tax addition affects your profit and therefore the tax you ultimately pay.