As of January 1, 2022 the flat-rate private-use portion will be increased from 0.8% to 0.9% per month. This means that the private-use portion will be calculated as 10.8% of the cost of acquisition of a business vehicle annually, rather than 9.6% as at present. If the purchase price is less than CHF 16,667 (previously CHF 18,750), the private-use portion recognized is at least CHF 150 per month or CHF 1,800 per year.

By contrast with current practice, the 10.8% private-use portion includes free commuting costs. It is still possible to deduct actual driving costs, although if this is done a logbook has to be submitted as evidence with the tax return.

Impact on employers

For employers with staff in the field, the change in practice primarily simplifies the administrative treatment of business vehicles that are also used privately. For example, employers will in future no longer have to provide information about the portion spent in the field on staff salary statements. In cost terms, the impact of the increase in the private-use portion on employers is a minimal increase in social insurance and VAT charges.

Impact on employees

For employees, the increase in the private-use portion raises taxable income; it also leads to higher social insurance charges. Because the higher private-use portion now covers free commuting, the FERI calculations no longer have to be shown in the tax return. By way of reminder about FERI calculations: in the past, commuting costs in a company car that exceeded CHF 3,000 were included in the individual’s tax return as income.