Those who receive a company car from their employer can usually also use it privately to a certain extent. Since the employee receives a pecuniary advantage from this, a private share is calculated for the vehicle. As of 01.01.2022, the regulation for calculating the private share was simplified and the share increased from 9.6% to 10.8%. In this blog post, we explain exactly how the private share works and what needs to be taken into account.
What do I have to do as an employer if I provide my employee with a company car?
If employees are provided with a vehicle, they must be charged a private share of0.9% per month (10.8% per year). This is subject to social security contributions and is declared in the salary statement as the relevant salary. Furthermore, the field "F" must be marked in the salary statement. This serves to inform the tax authorities that the employee is provided with a vehicle and therefore may not claim any other professional expenses for the commute in the tax return.
How is the private share calculated?
The basis is the purchase price or the cash value in the case of leased vehicles excluding VAT. The calculation is therefore as follows:
Purchase price vehicle CHF50,000 excl. VAT
Of which 10.8% annual private share
= 5'400 incl. VAT as effective private share
The amount calculated above is then shown in the salary statement under position 2.2 as a taxable salary.