Expense Regulations

The topic of expenses always provides material for discussion between tax authorities and companies. Various expense expenditures have both business and private characteristics, which often create question marks about the delineation of these costs. In such situations, an approved expense policy can help.

The creation of an expense policy creates clarity and reduces the effort involved in expense accounting. An expense policy defines, on one hand, which costs are handled in what way, but also which expenses are compensated either effectively or on a flat-rate basis. By implementing an expense policy, it is additionally ensured that any expenses of all employees are regulated uniformly.

The most common costs involve expenses for travel on public transport or the use of a private vehicle for business trips. Lunches or representation expenses are also often recorded within the expense policy. The same applies to clothing or devices used for both business and private purposes.

Important to note; the expense policy must be approved by the cantonal tax office. Since expenses are not taxable income, care is taken to avoid hidden wage payments. Therefore, expenses must always be delineated on the salary statement.  

Templates for expense policies can be obtained from the responsible cantonal tax administration.