Company car: Determining the private share for private use

For business vehicles (passenger cars), the private portion to be accounted for can either be determined effectively or on a flat-rate basis. More detailed information is provided in this article.

Effective Determination for Business Vehicles

If the total operating costs of a business vehicle and the kilometers traveled for business and private purposes can be proven using a logbook, the actual costs must be proportionally allocated to the business and private kilometers traveled.

Flat-Rate Determination

For flat-rate determination, no logbook needs to be kept. In this case, 0.8% of the purchase price (excl. VAT), but at least CHF 150, must be declared per month.

The private portion of a business vehicle is usually accounted for via payroll. There, the amount should be listed as an earnings component subject to AHV contributions. This private portion should then also be treated as a component of earnings for other social insurances (e.g., unemployment or accident insurance). The amount is considered revenue for the company from which 8% must be remitted as VAT.