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Old 20.06.2017, 23:38
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Company vs Private Car

Hi All,
We have recently relocated to CH and have the option of taking a company car or the car allowance (and buying our own car). Do I understand correct that if I was to take the company car, 0,8% of the purchase price of the car would be added to my monthly gross salary for income tax purposes?? Really appreciate your feedback. WN
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Old 21.06.2017, 10:37
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Re: Company vs Private Car

The standard tax practice is to declare 0.8% of the new purchase price of the company vehicle as income on the employee's monthly wage statement, with a CHF 150 minimum. This amount is then subject to payroll taxes, to the extent that the maximum thresholds have not been reached, and to income tax. For details on the wage statement declaration, see this link at 1.2 from an accounting firm:

http://www.bolleter-gmbh.ch/wp-conte...01.01.2016.pdf

Example: New car purchase price: CHF 40'000 x 0.8% = CHF 320 per month of income for personal use of company car
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Old 21.06.2017, 11:16
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Re: Company vs Private Car

Correct.

On top of that you have to add 70 Rp. per km for your commute to work (both ways count) per work day. Home office days / days traveled without car etc. can be deducted from the total number of days worked per year.

Furthermore, you can deduct a standard CHF 3500 (depending on the Canton) for the costs related to home work travel.

So, if you drive 50 KM one way with 220 working days, the added income would be: 100 *0.7*220 = CHF 15'400. You can deduct the standard deduction pf CHF 3'500.

All on top of the 0.8%.

Thank you for supporting the public transport system in CH.
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