Simplification of taxation of business vehicles in private use

This previously applicable regulation led to a disproportionately high administrative burden for both employers and business vehicle owners. With the Ordinance on Professional Expenses, which came into force on January 1, 2022, the lump sum was proportionately increased so that the use of the vehicle for commuting to work and other private purposes is covered.

The Ordinance on Professional Expenses now stipulates that the private use of a company vehicle (including commuting costs) can be taxed at 0.9% of the vehicle purchase price per month (10.8% per year) excluding VAT. The increase means that the use of the business vehicle for commuting to and from work is now also covered by a flat rate. There is no need to determine the actual commuting costs. The application of the lump sum also means that the travel expense deduction of CHF 3,000 for direct federal tax is excluded, as this is already included in the new lump sum. Employers are no longer obliged to declare the proportion of field work on the salary statement. Despite the change, it will still be possible to account for actual private use using a logbook instead of the flat rate and claim the respective deduction for travel expenses.