Swiss change to fixed benefit-in-kind taxation rate of company vehicle use for private journeys
The Swiss benefit-in-kind taxation rate that is applied to the use of company cars for private journeys will increase from 0.8 to 0.9 percent of the vehicle list price on 1 January 2022.
What does this mean in practical terms?
Since 1 January 2016, the use of a company vehicle for personal journeys, including the journey to and from work, must be declared as income on the tax return, at the rate of 70 cents per kilometre. A maximum allowance of 3’000 francs may be deducted as business expenses from the taxable income.
As of the beginning of next year, all journeys to and from work will already have been taken into account through the benefit-in-kind taxation rate increase from 0.8 to 0.9 percent that is applied to the use of company cars for private journeys. This means that the actual cost of any journey to and from work no longer has to be laboriously calculated, and basically simplifies the paperwork. The same applies for the employer; in future, employers will no longer be obliged to declare the proportion of business travel on the payslips.
However, despite this change, it will also still be possible to declare the actual private use by keeping a mileage log and claiming the mileage allowance.