In recent administrative guidelines, the Belgian tax authorities have clarified their view on the tax treatment of bikes provided by companies for commuting purposes.

The benefit in kind represented by a company bike is fully exempt from personal income tax even if the bike is not only used for transportation between home and the place of work but also for purely private purposes.

The exemption is available to employees and company directors.

Moreover, the exemption can be used in combination with the tax-free allowances paid by an employer to employees who use bikes for commuting, up to EUR 0.145/km.