The budget proposal of the Ministry of Finance for 2021 proposes an annual income tax exemption for employment bikes for a total of 750 euros. If implemented, the tax exemption model for bicycles would be completely new, as until now the employment bike has been a completely taxable income for the employee.

The Bicycle Association considers the new tax exemption entry to be excellent in itself, but the amount of the tax benefit should be doubled, ie 1,500 euros per year. In that case, a two-year leasing contract could be used to acquire a bicycle package worth EUR 3000 without income tax.

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- Employee bike leases are usually for two or three years and include maintenance, spare parts, theft insurance and bike accessories in addition to the bike. (Presentation) An income tax exemption of € 750 would in practice mean a total package of € 1,500 or € 2,250. At this price, it is not yet possible to get a high-quality electric bike with its equipment and maintenance to fold the business trip, says Matti Koistinen, Executive Director of Pyöräliitto, in a press release sent by the association.

An employment bike is by definition a bicycle that is acquired by the employer. The employment bike is intended for the personal use of an individual employee during both work and leisure.

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According to the Finnish Bike Federation, the typical leasing period for an employment bike is 24 months, and at the end of the contract, the majority of employees redeem the bike as their own.

The discussion of the budget proposal prepared by the Ministry of Finance will continue on Monday, when the government will meet for budget negotiations called budget debates.