Which bicycles are suitable for the service bike model?
Basically, all types of bicycles are suitable for the service bike model. From city bikes, cruisers, mountain bikes, trekking bikes, racing bikes or cargo bikes, just about any bike can be leased, whether with or without a motor (up to 25km/h assistance). However, there is usually a price range within which the bike must be located.

Can the company bike be used privately?
Yes! The company bike can be used for business and private purposes in leisure time and by the family.

What accessories can be leased with a company bike?
You can include all accessories in the lease that are permanently connected to your bicycle or e-bike as a company bike. Up to 15% of the vehicle price, accessories may be included in the lease. Textile clothing is excluded.

What does the all-round protection include and what is covered?
Basic insurance is obligatory for company bike leasing and is an integral part of the contract. The company bike is protected by default in case of theft and damage (at the original value). This means that the lessor, as the owner, assumes the risk for sudden and unforeseeable damage or destruction to the leased asset, e.g. in case of:

• theft, burglary or robbery
• Operating errors
• Simple negligence
• Accidental damage
• Vandalism
• Defects in design, materials or workmanship
• Overvoltage, induction or implosion
• Storm, frost, ice, earthquake or flooding
• Damage to motor or battery

The all-round protection package includes:

• Service and maintenance budget
• Mobility guarantee

Optionally, the "Premium Plus" insurance package can be taken out with additional benefits (relating to wear parts).

What is the mobility guarantee?
The mobility guarantee for your bicycle/e-bike as a company bike is offered by all leasing companies to varying degrees. In principle, a 24-hour service is available to you in the event of a breakdown with your company bike - including emergency call service, breakdown assistance, towing, overnight accommodation costs if necessary, onward and return journey and bicycle return transport.

Are there inspections for company bicycles?
Even your bicycle/bike as a company bike needs to be looked after, especially if you use it for your daily commute to work or if it is an e-bike. All leasing companies offer optional service, wear and inspection packages.
You also pay the installment for this out of your deferred compensation, so the net cost of maintaining your bicycle/e-bike is low.
 

How does company bike leasing work for the employee?
As an employee, it is important that your employer has a contract with a leasing provider. The employer leases a bicycle selected by you (employee) from the leasing provider and makes it available to you for business and private use.

What leasing options are there?
Salary conversion is the most popular model of company bike leasing. The employer lets you use the bike and keeps a part of your monthly gross salary in the amount of the leasing rate. This gives you a tax advantage, because your taxable income is reduced by the amount of your leasing rate.
Salary extra: If your employer provides you with a company bike as a salary extra, he pays the leasing installments. In this case you have no costs.

How does salary conversion work?
The company bike leasing model with the bike leasing service is a leasing financing for company bikes, in which the employer and employee make economic agreements for the benefit of both. The employer is the lessee and provides the employee with the bike for professional and private use by means of a transfer agreement. The monthly leasing installment is deducted from the employee's gross salary via so-called salary conversion. The employee agrees to receive the sum X of his contractually regulated salary as remuneration in kind (e.g. company bicycle) over a defined period (e.g. leasing period). This temporary salary conversion for the duration of the lease agreement results in a reduction in the employee's income subject to payroll tax and savings in payroll taxes.

How long does the leasing last?
As a rule, the standard leasing period is 36 months. Alternatively, an agreement for 48 months is also possible.
At the end of the leasing period, the bike belongs to the leasing company. The employee decides whether he/she wants to buy the bike (bike takeover) or return it (bike return). Early return due to termination, parental leave.... is possible. 

Can I also lease a used bicycle/bike as a company bike?
With most leasing companies it is not possible to lease a used bike.

Is it possible to lease a second bike?
Yes, it is possible, however, employers may limit the number of company bikes to one per employee.

Can my family use the company bike?
That depends on the agreement with the employer. In terms of insurance, this is possible with most leasing companies. However, the employer is allowed to make specifications or impose restrictions. In any case, you should draw up a transfer agreement and specify the authorized users in writing.

Can a company car be combined with a company bike?
Yes, company bikes can be leased in addition to a company car.

How much money do I really save? Why is my leasing rate so high?
How much you save depends on a number of individual factors. You can calculate your total savings at https://www.lease-a-bike.at/rechner or https://www.bikeleasing.at/leasingrechner/arbeitnehmer.
If your employer provides you with a company bike as a salary supplement, you have no costs and can ride your dream bike for free. If you pay the leasing rates yourself, it depends on whether your employer is entitled to deduct input tax.
As a guideline, you can save up to 30% in Austria compared to a direct purchase, but we will be happy to advise you. 

​​​​How does company bike leasing work for the employer?
As an employer, you sign a contract with a leasing provider that best suits your needs. After that, the employee can choose a bike of his/her choice. You lease it from the leasing provider and make it available to the employee for business and private purposes. The monthly leasing rate is paid by the employee out of his/her gross salary, which means significant savings in income tax and social security contributions. You as the employer have no financial disadvantage and only minimal, one-time expense. For tax purposes, bike leasing is equivalent to a company car.

The leasing package usually includes comprehensive insurance coverage (e.g. theft), a 24-hour mobility guarantee (pick-up service in case of bike breakdown) and optional inspection or wear-and-tear packages. Alternatively, the leasing rate can also be taken over completely as a salary extra.

What are the costs?
The bike leasing or salary conversion model does not result in high one-time investments or monthly running costs for either the employer or the employee. Bike leasing is cost-neutral, and the administrative expense per leased bike is low. Our employer's default insurance, which is already included in the leasing rates, eliminates the financial risk.

Input tax deduction & VAT liability
With the statement of the Austrian Ministry of Finance, it was determined that the provision of a bicycle or pedelec (e-bike) in exchange for work performance is always seen as business use, and thus the input tax deduction (for otherwise
otherwise entitled to deduct input tax). The 10% business use no longer has to be proven.
The question of whether consideration in the form of salary conversion, reduced salary increase, etc. would trigger a VAT liability can also be answered as follows: The consideration in this form is irrelevant, since the assessment basis in all these cases is always the remuneration in kind.
in all these cases is always the remuneration in kind according to the remuneration in kind ordinance, and this is currently € 0.00.

The bike as a benefit in kind 
For ecological reasons, employer-owned bicycles and motorcycles with a CO2 emission value of 0 grams that are made available for private use are currently entitled to a benefit in kind of €0. This includes motorcycles, motorcycles with sidecars, quads, electric bicycles and self-balancing scooters, provided they have an exclusively electric or electro-hydraulic drive.
Thus, a benefit in kind of currently € 0 is to be applied for the provision of an electric bicycle for private use.

Is a conversion of benefits (waiver of part of the cash salary in return for a benefit in kind) recognized for tax purposes? 
Within the framework of private autonomy, an amendment to an employment contract by which a reduction in cash salary is made and an electric bicycle is made available for private travel is permissible.
For tax purposes, the legislator has explicitly regulated in the law those cases in which a salary conversion is not permissible (e.g. job ticket § 26 Z 5 EStG 1988, pension fund contributions § 25 Abs. 1 Z 1 lit. a EStG 1988 and § 26 Z 7 lit. a EStG 1988). Since there is no explicit statutory restriction in the Income Tax Act on the conversion of remuneration for the transfer of an electric bicycle, the change in the employment contract made within the framework of private autonomy for the future (cash salary reduction and transfer of electric bicycle) must also be recognized for tax purposes. Whether the cash salary is reduced by the gross or net leasing rate, or only by a part of the leasing rate, is also subject to the private autonomy of the service contract amendment. However, it should be noted in this context that, as a matter of principle, the granting of a payment in kind may not reduce any collective bargaining agreement minimum cash wages.

As an employer, can I protect myself against risks?
Yes, there are appropriate insurance packages (included as standard in every lease) that cover these risks and thus minimize the overall risk for the employer.

The bike leasing service offers unique solutions on the market that cover just about every risk arising from employee leasing. Two employer insurance policies are briefly explained below:
1. employer default insurance "Premium": insurance that protects you from costs in case of long-term illness and death of the employee (is included in leasing rate).
2. employer's default insurance "Premium plus": insurance that protects you against costs in the event of parental leave, disability ("invalidity and occupational disability"), dissolution by mutual agreement* and termination (is included in leasing rate).

Is it possible to have more than one company bike per employee?
In principle, several company bikes per employee are possible. However, this is subject to the restrictions previously agreed with the bike leasing service.

If an employee has the advantage of the free use of several motor vehicles for private trips (e.g. two or more cars, a car and a motorcycle), a non-cash benefit value within the meaning of Sections 4 and 4b of the Non-Cash Benefit Value Ordinance is to be recognized for each individual motor vehicle.
Since a benefit in kind of €0 is currently to be recognized for the provision of an electric bicycle for private use, the benefit for the provision of several electric bicycles is also currently €0 in total.

What happens if the period of use is/will be terminated prematurely?  
Premature termination of the usage transfer by the employee and return of the bike during the predefined usage period is generally not possible. This also applies in the event that the employee wishes to order a new bike. Premature termination of the contract is only possible by paying a redemption amount, but this is associated with additional costs.

What happens at the end of the term?
At the end of the term, the bike belongs to the leasing company. Your employee can then decide whether he/she wants to return the bike or take it over.
Your company will receive an annual overview of all the bicycles taken over and the corresponding proof of the imputed income. The transfer of the company bike ends with the termination of the employment relationship.

In principle, the leasing contract can also be passed on to the new employer, the employee can purchase the bike for the remaining price (takeover offer) or it is returned to the leasing company.
All leasing companies also have some kind of employee indemnity insurance. This protects you from costs in the event of long-term illness, termination of employment, disability, parental leave and death of the employee.

Warranties at the end of the term by the employer?
By selling the vehicle directly to the employee, the employer does not incur any liability claims in terms of warranty and does not have to worry about anything. 

Note on collective agreements
The salary conversion works only in case of an existing overpayment of the collective agreement; that is, after deducting the leasing installment from the employee's gross monthly salary, the employee's salary must not be below the collective.
However, the model may also be offered to all employees who wish to finance the leasing through their net salary. This may also be applied in those cases where no payroll tax is paid (marginal employees, etc.). 

As a self-employed person, can I also lease a company bike even though there is no salary conversion?
Yes, self-employed persons can also obtain a company bike via the bike leasing service, which may also be used privately.

Is leasing worthwhile for me as a self-employed person?
This varies greatly from person to person and cannot be said in general terms. For all further questions regarding tax recognition, we must refer you to your tax advisor, since depending on the business use of the leased bike, this can also be declared as a company expense.

Your way to the bike of your dreams...

...more information HERE.