From 1st January 2016, companies subject to tax on companies that put bicycles available to their employees for commutin workplace can benefit from a tax reduction on the companies.
The tax reduction for making a fleet of bicycles available to employees for their home-workplace journeys is provided for by article 39 of Law No. 2015-992 of August 17, 2015. An implementing decree has yet to be published.
At the same time, a bicycle kilometer allowance is also set up for employees using their own bikes. More info: mileage costs
Bike tax reduction
Companies concerned by the reduction of corporate tax on the bicycle plan
Only companies subject to corporation tax are affected by the tax reduction for making a fleet of bicycles available to employees in order to make trips between their home and the workplace.
Individual entrepreneurs (craftsmen, traders, liberal professionals), with the exception of EIRLs with option for corporation tax , and partners of partnerships cannot therefore benefit from the said tax reduction.
The calculation of the IS reduction of the bicycle plan
The tax reduction is equal to the costs generated by the free provision of a fleet of bicycles to employees, for their trips between their home and the workplace, within the limit of 25% of the purchase price of said fleet of bicycles.
In principle, no ceiling is provided for the purchase price of bicycles, but this should be specified in the next implementing decree, as are the reporting formalities to benefit from it.
The bicycle tax reduction
The amount of the tax reduction obtained by the company can only be deducted from the corporation tax due by the company. Using the taxfyle’s tax calculator is important in this case.
If the amount of the reduction exceeds the tax due, the surplus can neither be recovered (it is a tax reduction and not a tax credit) nor carried over to the following financial year. The surplus is therefore lost.
For the needs of its activity, a company may need to acquire or lease a commercial vehicle.
We invite you to take stock of the taxation related to commercial vehicles, in particular with regard to tax deductibility and recovery of VAT, both on the acquisition or the rents paid and on the directly related expenses (fuel and maintenance of the vehicle. vehicle).
The criteria for classification as a commercial vehicle
Commercial vehicles are designed to transport goods, unlike passenger vehicles which are designed to transport people. To be classified as a commercial vehicle, the vehicle must first of all have only two maximum excise places and not have a rear seat or anchor points allowing the use of rear seats. Then, the gray card of the vehicle in question must contain the words “commercial vehicle”.