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Old 16.12.2016, 02:28
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Company Car

Hello,

It is my first post and is very nice that you can find a lot of kwoledge in one place.

My question is the following:

I have a started recently a Swiss company an AG. A car is something I need everyrtime I visit Switzerland. Here on other threads it is mentioned that you can buy a car but you can not get easily license plates if you are not resident. I am not resident and I do not plan to move. However due to the fact that I visit the country often, it would be very good if I am allowed to buy a car and have also some license plates. The fact that I own a company changes something? Can I register the car under the company's name?

Thank you for you help.
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Old 16.12.2016, 03:24
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Re: Company Car

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Hello,

It is my first post and is very nice that you can find a lot of kwoledge in one place.

My question is the following:

I have a started recently a Swiss company an AG. A car is something I need everyrtime I visit Switzerland. Here on other threads it is mentioned that you can buy a car but you can not get easily license plates if you are not resident. I am not resident and I do not plan to move. However due to the fact that I visit the country often, it would be very good if I am allowed to buy a car and have also some license plates. The fact that I own a company changes something? Can I register the car under the company's name?

Thank you for you help.
You own a Swiss/registeres here company? Yes ofcourse then you can register a car under the name of the company. (You can even take it off the taxes )
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Old 16.12.2016, 09:35
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Re: Company Car

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You own a Swiss/registeres here company? Yes ofcourse then you can register a car under the name of the company. (You can even take it off the taxes )
Thanks curley for your quick answer. Yes I own a company in Zug. I come often for business trips and I wanted to buy a car, without having to change my residency. What kind of taxes can you take off? Also do you know maybe a company that does the paper work with the public authorities if I find a car?
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Old 16.12.2016, 10:05
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Re: Company Car

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Thanks curley for your quick answer. Yes I own a company in Zug. I come often for business trips and I wanted to buy a car, without having to change my residency. What kind of taxes can you take off? Also do you know maybe a company that does the paper work with the public authorities if I find a car?
You don't "take taxes off". It's the same as any company expense anywhere, the costs of running the car (or most of them depending on if you use the car personally as well) can be deducted from your pre-tax profits.

And whoever is administering your company can do the paperwork for registering and insuring the car
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Old 16.12.2016, 10:10
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Re: Company Car

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You don't "take taxes off". It's the same as any company expense anywhere, the costs of running the car (or most of them depending on if you use the car personally as well) can be deducted from your pre-tax profits.

And whoever is administering your company can do the paperwork for registering and insuring the car
In Vaud, which may or may not be different from Zug, you deduct anbsolutely everything possible for the car, petrol, tyres, servicing, car wash, you name it off it comes !

The flip side, 8%(i think) of the residual value is added to your taxable income.

It makes sense to have company car here
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Old 16.12.2016, 10:37
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Re: Company Car

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Also do you know maybe a company that does the paper work with the public authorities if I find a car?
Buy from a professional garage, I think it would be more difficult to find one that refuses to provide that service rather than finding one that does (at a price of course).
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Old 16.12.2016, 11:57
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Re: Company Car

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You don't "take taxes off". It's the same as any company expense anywhere, the costs of running the car (or most of them depending on if you use the car personally as well) can be deducted from your pre-tax profits.

And whoever is administering your company can do the paperwork for registering and insuring the car
Exactly, that's what I meant, it's expenses. "Taking it off the taxes" is a German term, sorry, I don't usually do that

As you live somewhere else and are always on business when here, I guess the private part doesn't play a role as you can claim there is none. But let someone else give you that advise.
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Old 16.12.2016, 22:12
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Re: Company Car

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You don't "take taxes off". It's the same as any company expense anywhere, the costs of running the car (or most of them depending on if you use the car personally as well) can be deducted from your pre-tax profits.

And whoever is administering your company can do the paperwork for registering and insuring the car
Ahh ok. Yes that makes sense. I thought that you might take off some costs like the VAT or any other taxes. Thank you for you help.
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Old 16.12.2016, 22:18
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Re: Company Car

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In Vaud, which may or may not be different from Zug, you deduct anbsolutely everything possible for the car, petrol, tyres, servicing, car wash, you name it off it comes !

The flip side, 8%(i think) of the residual value is added to your taxable income.

It makes sense to have company car here
today only thank you. 8% on the tax income of the company? Since I'm not resident there, I am not obliged to be taxed there and have the 8%.

Also do you know if you can register even very expensive car on the company? Or there is a limit to the price of the vehicle you can register.
I guess , I will ask our accountant about that to be sure.
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Old 17.12.2016, 10:40
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Re: Company Car

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today only thank you. 8% on the tax income of the company? Since I'm not resident there, I am not obliged to be taxed there and have the 8%.

Also do you know if you can register even very expensive car on the company? Or there is a limit to the price of the vehicle you can register.
I guess , I will ask our accountant about that to be sure.
Go ask your accountant !

As a house cleaner with a Chf 50k revenue, a Ferrari maybe pushing things a bit, as a director of a multi million Chf turnover company, no problems
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Old 04.01.2017, 20:42
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Re: Company Car

I hope OP won't mind me hijaking their thread with my questions

I am trying to assess whether a company car benefit in CH is up to par with similar offerings in other countries, namely DE and BE, in the UK last I heard from my peers it was a rip-off. So what I found is this:

https://www.pwc.com/us/en/hr-interna...folio-2013.pdf

Quote:
The free use of a company car for private purposes is considered as a taxable benefit. The value of this benefit is subject to cantonal variation but is, in many cantons, fixed at a monthly amount of 0.8% of the purchase price of the car (minimum CHF 150 per month).
and https://home.kpmg.com/xx/en/home/ins...-2016-048.html

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In the past, drivers in Switzerland have had to include the private use of the company car as a taxable benefit-in-kind and 9.6 percent of the car’s value excluding VAT is included as part of the company car holder’s gross salary to reflect this benefit.
which 0.8x12=9.6 i.e. the same

the prospect wrote "ein Geschäftsauto, das gegen eine monatliche Abgabe auch privat genutzt werden kann." however no details have been made clear yet, so I am trying to figure out what this Abgabe really is.

there were similar questions but no answers alas:

Company car scheme - tax payable on fuel?

Quote:
Same question here: 0.8% of the original sales price of the car is taxable income each month, does that cover everything including fuel? is a fuel card normal in CH for company cars?
Company car allowance question.

how does that 0.75/km thing work? if paying for a holiday trip back and forth to Slovenia at 0.75CHF/km, that'd be through the roof, but I suppose it should be less.

Can someone please also confirm or infirm that:

Another company car tax question

Quote:
I read it as adding 240 to your taxable income. That is, you pay taxes as if you earned another 240 per month. This is not the same as paying 240 in tax.
Thanks much for looking into this, I am anticipating some knowledgeable insights on this with enthusiasm

cheers
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Old 04.01.2017, 22:00
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Re: Company Car

I had a company car for many years in Switzerland
It was a lease vehicle
The lease covered full service and all repairs
The company paid for fuelling and all car-related running expenses such as motorway sticker, windscreen washer fluid, etc

I had a nominal amount added to my monthly salary, which increased my taxable income
Example:
Montly salary 10,000
Company car: 500 per month, added to salary
Total income: 10500

Paid to my bank account: 10000 (less all social security deductions of course)

At the end of the year the Lohnausweis states the amount of income including the company car, eg 12 x 10500, and you pay tax on that income figure

And I could use the vehicle privately whenever I wanted and as much as I wanted.
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Old 05.01.2017, 17:52
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Re: Company Car

Thanks heaps mate,
it looks like you had a nice deal back then. So the 500CHF were actually 0.8% off the total price right?

I'd guess the practicalities are on each company's discretion.
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Old 06.01.2017, 13:22
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Re: Company Car

Something to consider:

One of the big Swiss banks had a pretty generous car program. Along came the financial crisis and the need to cut costs. The company car benefit was one of the first to be done away with; given that the allowance amounted to a not insignificant portion of many employee's total comp, the loss of that benefit was a painful haircut.

Make sure that you understand how the inclusion of a company car is defined in your contract, and what would happen in a scenario similar to the above.
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Old 06.01.2017, 13:46
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Re: Company Car

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Something to consider:

One of the big Swiss banks had a pretty generous car program. Along came the financial crisis and the need to cut costs. The company car benefit was one of the first to be done away with; given that the allowance amounted to a not insignificant portion of many employee's total comp, the loss of that benefit was a painful haircut.

Make sure that you understand how the inclusion of a company car is defined in your contract, and what would happen in a scenario similar to the above.
Ah the bonfire of the Cayennes
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