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New tax regime

The offsetting of private use of a business car was increased to 10.8 percent of the purchase price each year. This means that the costs of commuting borne by the employer are now compensated on a flat-rate basis.

As before, the so-called private share is listed in the salary statement as an ancillary salary benefit. The complicated declaration of the “company business involving the car” share and the home office days no longer applies. The uncompensated journey between place of residence and place of work will continue to be indicated by means of field F in the salary statement.

Consequences for employers

The administrative effort involved in creating the pay slip is reduced because the proportion of “company business involving the car” no longer has to be shown.

Consequences for employees

With the new regulation, there are both winners and losers from a tax point of view due to the flat-rate recognition of commuting. The legislative adjustment is more advantageous for employees with a longer commute and little or no “company business involving the car”. This is because the limit on deductible travel expenses no longer applies at either federal or cantonal level. The additional tax burden is likely to be greater for employees with a high proportion of “company business involving the car” or a short commute.

As a rule, the higher private share also forms the basis for social security contributions (AHV/IV and where applicable occupational pensions). For this reason, there is usually a slight improvement in pension benefits if the statutory or regulatory maximum benefits have not yet been reached.