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Old 05.06.2020, 20:10
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company car option

I got an employment offer with an option for a company car with private use allowed - and I fail to see the benefit of it, so can I use the forum as a sounding board, please?

The offer says that 1% of the car's value will be added to my payslip for the private use of the car monthly (this case ca. 400CHF). Plus I can't deduct the way to work from taxes (3-4000 CHF). So in the end I end up with a car paid for by my employer, I save the leasing costs (about 5k pa) plus the insurances (2k?). But it costs me approximately 8'000 francs in taxation... That doesn't seem like a good deal to me...

If I chose to use my own car, besides having to buy it, I can have it reimbursed for business trips at 0.7CHF/km (estimates for this role might be 2-300 francs a month), which recuperates about 50% of its leasing cost, plus I can deduct the way to work (3-4k).

Option B sounds like a much better deal to me. Am I missing anything or is having a company car not really a thing in CH?
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Old 05.06.2020, 21:17
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Re: company car option

You're numbers are completely wrong since you mix up tax and taxable income.

Have a talk with your employer and have him explain to you how it actually works.

And don't forget about the costs for repairs, service, mfk, tyres etc...
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Old 05.06.2020, 22:13
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Re: company car option

What is the car allowance? Take a cheaper leasing car and use the rest of the amount to allow for higher taxes.

As an example: company allows car for 1500 CHF. You lease a car for 1000 CHF. Company pays you the difference of 500 CHF which benefits towards towards the higher taxes.

Obviously only if your company allows this kind of deal.

And as EdwinNL said: full service leasing? If not, you may end of worse financially
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Old 05.06.2020, 22:19
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Re: company car option

It may not apply to you if you don't use your car for commuting long distance to work. However if you do then you have to account for the 2016 FABI commuting tax which is considerable and in my view completely negates any benefit to owning a company car for me (I pay almost CHF 8k in additional tax).
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Old 06.06.2020, 00:23
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Re: company car option

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What is the car allowance? Take a cheaper leasing car and use the rest of the amount to allow for higher taxes.
It's not an allowance, it's a car. It says you get a car that is worth X francs, not the money to pay for the car.
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Old 06.06.2020, 02:45
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Re: company car option

Do they offer a car allowance option or only having the car?

One thing you did not consider when using your car for work is if accident happen you are responsible, not the company. Small chance and all but consider this in your pros and cons.

K
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Old 06.06.2020, 02:48
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Re: company car option

I don't get your calculations.

4800 CHF added to your taxable income
4000 CHF you cannot deduct for transport to work

Total=8800 CHF additional taxable income.

You mention additional taxes of 8000 CHF?

Even taking a high tax bracket and assuming this makes you jump a bracket hence you would pay 1-2% more overall, it still sounds high?
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Old 06.06.2020, 00:21
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Re: company car option

Quote:
You're numbers are completely wrong since you mix up tax and taxable income.
I guess I didn't make the distinction proper. Still I meant the right things, just bear with me

Quote:
And don't forget about the costs for repairs, service, mfk, tyres etc...
That'd be About zero apart from the 2 regular services for the first 4 years for a new car, especially with full service leasing, won't it?
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