Bicycle as a Benefit

Long-term rental of bicycles and e-bikes – framework of operational leasing

Prerequisites for the use of tax benefits: 

  • This benefit is provided in a non-monetary form, based on an agreement between the employer and the employee, which stipulates that for a period of 24 months, part of the employee’s salary, bonuses or special rewards will be provided in kind by the long-term use of the employer’s bicycle (e-bike).
  • The employer pays the rent to the leasing company, not the employee.
  • The bicycle shall not be transferred to the employee’s ownership during the period when it is provided for long-term use.

How does it work?

  • The employee chooses the bike he/she is interested in from the KOLONAOPERAK.CZ project offer.
  • The employer enters into a leasing agreement with a leasing company for the long-term lease of the selected bicycle.
  • The employer provides the selected bicycle to the employee for long-term free use.
  • The employee and the employer enter into an agreement detailing the terms and conditions of the employee’s use of the selected bicycle and describing the consequences of the employee terminating employment with the employer before the lease of the selected bicycle ends.
  • The selected bicycle is the property of the leasing company for the duration of the long-term lease, with the employer having the option to buy the bicycle at a pre-agreed price or return it to the leasing company at the end of the lease.
  • It depends on the agreement between the employee and the employer whether the employer will allow the employee to buy the bike of his choice from the employer at the end of the long-term lease.

Taxation

To qualify for the exemption below, the following conditions must be met cumulatively:

  • The benefit must be provided in a non-monetary form, and
  • The benefit must be provided for selected purposes (use of sports or physical education facilities)
  • The employer’s cost of this benefit must be accounted for as a non-tax deductible expense

For the employee, the provision of this benefit is associated with a saving of 26% compared to the payment of a cash bonus (15% saving on tax, 4.5% saving on health insurance and 6.5% saving on social security insurance).

For employers,

the saving amounts to 33.8% (24.8% social security insurance and 9% health insurance), which must however be reduced by a 19% corporation tax surcharge.

What do we provide?

FOR EMPLOYEES

  • We will prepare a wide range of bikes
  • We will introduce and explain the entire project to them through your company’s information channels
  • We will provide them with a consultant who will help them selecting their bikes
  • We will prepare and deliver the bikes to their homes if they wish

FOR EMPLOYER

  • We prepare a draft Agreement on the Terms and Conditions for the Provision of a Wage in Kind
  • We arrange comprehensive financing from the leasing company
  • We provide comprehensive service care for your bikes

We will be happy to prepare a sample fleet calculation according to your requirements and explain all the details of the service we offer.