Simplified taxation of the private use of company cars
Philipp Roth
According to a decision of the Federal Assembly, private use of company cars should be taxable at a flat rate which now also includes travel costs to the place of work. On 28 June 2019, the Federal Department of Finance (FDF) submitted an amendment to the ordinance for consultation.
In accordance with the media release of 28 June 2019, the FDF is proposing an amendment to the Professional Expenses Ordinance so that the private use of a business vehicle will now be taxed at 0.9% of the vehicle purchase price per month (instead of 0.8% as previously). In return, the offsetting for commuting and the deduction of travel expenses will be dropped. In addition, employers will no longer be required to declare the "field service" portion on the wage statement.
The bill regulates the procedure for direct federal tax and is designed in such a way that it is revenue-neutral for a business vehicle owner with a vehicle purchase price of CHF 50,000, 30 kilometres of daily commuting to work and around 50 per cent sales force share.
The press release and further information is available here.
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