Below is an example calculation from our calculator along with an explanation. You can always key in your own values in our transparent calculator.
Price of the bike: 20,000 including VAT
Marginal tax: 50% (The higher the marginal tax, the more favorable for the employee)
No service package
No employer contribution
Yes to tax reduction.
Leasing Premium: SEK 612.40
Insurance: SEK 87.50 (cannot be opted out)
Total: SEK 700 incl. VAT (the company's leasing costs)
Bike benefit value: SEK 234
Tax reduction of SEK 250 means that the bike benefit value becomes SEK 0 = tax-free benefit, no benefit value then needs to be reported to the Swedish Tax Agency. If the value of the benefit exceeds the deduction of SEK 250, the difference is taken up as a bike benefit in the salary specification and thus in the reporting to the Tax Agency.
Gross salary deduction: SEK 532.57 (deduction from salary before tax)
The gross salary deduction covers the company's expenses for the lease. The reason it is lower than the company's total leasing costs is because we also calculate savings in employer contributions. This is because the company pays less payroll tax when the salary goes down and so that the company does not make money from the employee taking a benefit bike, we add the savings as a contribution to the leasing cost.
532.57 x 31.42% = SEK 167
SEK 532.57 + SEK 167 = SEK 700 (covers the company's leasing costs so that the benefits bike becomes cost-neutral)
The net cost is then dependent on the employee's marginal tax. In this case, the net cost will be 532.57 x (1-50%) = SEK 266.28.
If you take a more expensive bike so that a benefit value is added, the savings in employer contributions are calculated on the difference between what the company earns from the gross salary deduction and what the company has to pay in employer contributions due to the benefit. The net cost then also takes into account the tax the employee pays on the benefit. However, the net cost is shown only to give an indication to the employee what the actual cost will be for the bike.