If the company vehicle is also available for private use, this paid benefit must be declared on the salary statement as a "private share of the company vehicle" and thus also taxed. Until now, 0.8% of the vehicle purchase price excl. VAT had to be recorded each month as fringe benefits.
On January 1, 2022, this flat rate was increased from 0.8% to 0.9% per month (or 10.8% per year). In addition, employers will no longer be required to declare the outside service portion on the salary statement, which will simplify the administrative process.
However, it will still be possible to make an actual accounting and to note in a logbook for each trip how long the trip was and whether it was of a private or business nature. With the help of this book, the vehicle costs can then be apportioned at the end of the year.
The change in the flat rate has further consequences for employers: On the one hand, social security contributions increase, as the gross wage is slightly higher. On the other hand, the VAT burden also increases, since VAT must be paid on the private share of the business vehicle. The example below illustrates the differences:
Purchase price vehicle (excl. VAT) of CHF 60,000 x 0.8% x 12 months = 5,760.- must be declared in the salary statement under item 2.2.
Purchase price vehicle (excl. VAT) of CHF 60,000 x 0.9% x 12 months = CHF 6,480.- must be declared in the salary statement under item 2.2.
Do you need help with the correct declaration of private shares or are you unsure what the best solution is for you? We will be happy to provide you with competent and personal support in all matters relating to fiduciary services, taxes, special topics and insurance. Contact us now!
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