€50 exemption limit
Provide your employees with the mobility budget in addition to their regular salary available, there is a benefit in kind according to § 37b EStG. This is exempt from income tax or social security contributions up to a limit of €50. Please note, however, that other non-remunerated employee benefits are also included in the exemption limit.
30% flat rate tax
If the tax-free limit of the benefits in kind received in addition to the wage is exceeded, a flat-rate taxation of 30% can be applied according to § 37b paragraph 2 EStG. This is borne by the employer and paid directly.
Tax-free and discounted means of transport
Environmentally friendly means of transport are subsidized by tax law. Public transport trips or the use of a job bike are non-cash benefits received in addition to wages and are exempt from income tax or social security contributions without limitation . The means of transport can be used both for business and private purposes.
Below you will find a summary of the taxation of the individual means of transport. Important here is the differentiation between salary extra and salary conversion.
salary extra
If you make the mobility budget available to your employees as an extra salary, the non-cash benefit exemption limit of €50 applies. In addition, sustainable means of transport such as public transport or the job bike are also exempt from wage tax or social security contributions above the exemption limit.
Salary conversion
If you make the mobility budget available to your employees as salary conversion, there is no benefit in kind according to Section 37b EStG and the exemption limit expires. The non-cash benefit must be regularly taxed by your employees. Therefore, salary conversion is only suitable for the special regulation for car subscriptions/leasing and job bikes.
Everything in one place
You will receive a monthly tax file via the uRyde Dashboard, which can be automatically read in and processed by your payroll tax department or your tax consultant. You can also manage all other uRyde Mobility Services here.
*Disclaimer: The consideration does not constitute tax advice and in no way replaces individual advice from a tax advisor.