Company Bicycles in France – is the private use to be considered a benefit in kind ?
The bicycle, whether a classic bike or an e-bike, is an alternative, sustainable mode of transport.
The employer can provide a fleet of bicycles to its employees for business as well as for private use for the home to workplace journeys. By promoting this sustainable mode of transport, the company implements concrete changes in favour of the environment.
Besides, it can have a positive impact on the quality of life of employees as it can help to avoid traffic jams while practicing physical activity. From a financial perspective, it can significantly reduce commuting costs.
When provided by the employer to the employees free of charge, the question arises whether this is to be considered a benefit in kind subject to social contributions and payroll taxes.
Company Bicycles – a benefit in kind ?
A benefit in kind is defined as a good or services that an employer provides to its employees free of charge. By this definition, if the private use of the company bicycle is authorised, the value of this advantage would have to be integrated on the French payslip for the calculation of taxes and contributions.
However, as a tolerance and for simplification, the value of the costs generated by the provision of bicycles (purchase, installation costs, maintenance) shall not be considered as a real benefit in kind. This has been re-confirmed by URSSAF for 2023.
As a result, neither the employee nor the employer will have to pay social contributions on the value of the provision of company bicycles.
Considering the significant costs and environmental impacts of daily commuting, it is a great benefit not to be neglected. Together with other optional and tax-free employee benefits, such as meal vouchers in France, the free provision of company bicycles can make the employee compensation package complete.