Private share in business vehicles

Anyone who receives a company vehicle from their employer can usually also use it privately to a certain extent. Since the employee thereby receives a monetary benefit, a private share for the vehicle is calculated. As of 01.01.2022, the regulation for calculating the private share has been simplified and the share was increased from 9.6% to 10.8%. We explain exactly how the private share works and what must be taken into consideration in this blog post.

What do I need to do as an employer if I provide a company vehicle to my employee?

When employees are provided with a vehicle, a private share of 0.9% per month (10.8% annually) must be added. This is subject to social security contributions and declared in the payroll statement as relevant salary. Furthermore, box "F" must be checked in the payroll statement. This serves to inform the tax authority that an employee is provided with a vehicle and therefore cannot claim any additional professional expenses for commuting in their tax return.

How is the private share calculated?

The basis is the purchase price or the cash value for leased vehicles excluding VAT. The calculation is as follows:

Purchase price vehicle CHF 50,000 excl. VAT

Of which 10.8% annual private share

= CHF 5,400 incl. VAT as the actual private part

The amount calculated above is then declared in the payroll statement under item 2.2 as taxable income.