Home office and taxes: What you need to know

The Corona crisis has banished many employees to home office. Meanwhile, the home office has become an omnipresent part of the working world. For many, it is even a requirement of the employer. But what does that mean for taxes? How are the employer's compensations for the use of the private workspace treated? What professional expenses can be deducted? And how do the regulations differ depending on the canton? In this article, you will learn everything important about the topic of home office and taxes.

Compensation for the Workspace

When you work from home, the question arises whether the employer's compensation for using the private workspace is considered taxable income or tax-free expense reimbursement. The answer depends on whether your employer provides a workspace or not.

• If the employer provides you with a workspace, the compensation is considered taxable income. This means you must declare it as income on your tax return and pay taxes and social security contributions on it.
• However, if the employer does not provide you a workspace, the compensation is considered tax-free expense reimbursement. This means you do not need to report it on your tax return, and you do not pay taxes or social security contributions on it.

The amount of compensation is not legally defined but is agreed upon between employers and employees.

Other Form of Compensation

In addition to the compensation for the workspace, your employer can also reimburse you for other costs incurred in connection with the home office. This includes, for example, costs for IT infrastructure, internet, office supplies, etc. These costs are also considered tax-free expense reimbursement, provided they can be proven. Otherwise, they will be treated as taxable income.

Deduction of Professional Expenses

If you work from home, you may also be able to deduct some professional expenses from your taxes. These include:‍

• ‍The costs for the workspace: If you use a separate room exclusively for professional purposes and do not have another workplace, you can deduct a proportionate share of the costs for rent, heating, electricity, etc. The amount of the deduction depends on the size of the room and the rent.‍
• Travel costs: If you occasionally have to travel to your workplace, you can deduct actual travel costs, such as those from public transportation, or the flat rate of 0.70 Swiss francs per kilometer if you use your car.
• Meal costs: If you have to eat out for professional reasons, you can deduct actual meal costs or the flat rate of 15 Swiss francs per day.

Canton Differences

The tax treatment of the home office can vary depending on the canton. Some cantons have enacted special regulations due to the Corona crisis to accommodate employees. For example, the cantons of Zurich, Bern, and Basel-Stadt have increased the deduction for the workspace or reduced the deductible amount for meal costs. Therefore, it is advisable to contact the respective tax office directly for any uncertainties.

Conclusion

The home office comes with certain tax implications that both employers and employees must consider. The compensations provided by the employer for the use of the private workspace and other costs may be taxable or tax-free, depending on the situation. Employees can also deduct some professional expenses from their taxes if they meet the requirements. Since the regulations can vary by canton, it is still advisable to inform oneself in advance.