The private use of a company car constitutes a taxable monetary benefit. According to the company car rule (also known as company car privilege), this monetary benefit is taxed on the basis of a fixed percentage of 1% of the gross purchase price. This rule also applies to company bikes. Since 2020, a reduced rate of only 0.25% of the gross list price (0.25% rule) applies, making the bike even more affordable for company bike users.