What is a business mile

Business car

Last change on 02/03/2016

Tax optimization with the mixed-use company car

The most important fringe benefit in Switzerland is and remains the company car, which can also be used for private trips. Most companies will apply the flat-rate regulation, according to which 0.8% of the purchase price excluding VAT per month is to be declared on the salary statement as wages in kind under section 2.2.

Even with second-hand cars, the private share is calculated at 0.8% of the purchase price excluding VAT per month. However, the minimum amount of CHF 150.00 per month must be observed. The flat-rate private share for a vehicle which z. B. was purchased at CHF 12,000, is valued at CHF 1,800.00 per year.

Depending on the proportion of private use, alternative methods may be worth considering:

Frequent drivers (e.g. field staff)

  • Keeping the vehicle used for business privately and billing 70 cents per business kilometer as a reimbursement of expenses -> Advantage: There are no social benefits on the vehicle expenses and the commuting allowance in the private tax return is still possible.

Comparatively few business kilometers, long commute (e.g. back office)

  • Use of a mixed-use business car. Declaration of the private share using the flat rate of 0.8% of the purchase price excluding VAT per month in the salary statement.

Few private kilometers, long commute to work

  • Use of a mixed-use business car. Billing of private kilometers according to the logbook. According to the guidance on the wage statement, the privately driven kilometers (excluding the way to work) must be declared as benefits in kind in accordance with the approach from the TCS table under 2.2. The way to work is dealt with with a note under the letter "F". If there is an expense regulation approved by the tax administration, the privately driven kilometers can normally be declared at 40 cents per kilometer.