Typical mistakes that become especially costly
In practice, the following errors recur most often:1,2,5,6
- Flat-rate expenses without a sound rationale: The flat rate may be convenient internally, but it will not withstand scrutiny if it does not roughly correspond to the actual expenses incurred.1
- Home office or infrastructure costs treated incorrectly: Costs reimbursed effectively for home office, co-working or office infrastructure are not disclosed correctly, even though the FTA expressly requires this.1
- Private-use portion for the company car calculated too low: Instead of using the relevant purchase price excluding VAT, calculations are based on residual values, internal budgets or later purchase prices.1,2
- Employee contributions offset incorrectly: Payroll deductions are not mirrored properly against the tax-relevant private-use portion, although this determines what still has to be added back in the salary certificate.2
- VAT logic overlooked: The private-use portion is treated correctly for payroll tax purposes, but not reflected, or not reflected correctly, in VAT.5,7
- Approved policy without the correct note: The expense policy exists substantively, but the mandatory reference in section 15 of the salary certificate is missing.1
- Shareholder-managers treated like ordinary employees: Especially with expensive vehicles, luxury components or no charge for private use, additional corrections may arise at both company and shareholder level.6
Clean implementation in the business
For a practical solution, you should not handle the issue only within HR or only in accounting, but establish it as a joint process involving HR, payroll administration, fiduciary support and finance responsibility.1,5,7
- Inventory all reimbursements: List all types of expenses, vehicle arrangements, cost contributions and home office reimbursements, and classify each item either as a genuine expense or as a salary component.1
- Define the reimbursement logic: Decide for each category whether it should be handled against receipts, with a permissible case-based flat rate or with an approved flat-rate rule. Where necessary, apply for an expense policy in the canton of domicile and use the model templates as a guide.1,4
- Document vehicle data centrally: For each vehicle, record the purchase price or cash purchase price according to the lease agreement, start of use, employee contributions and the method used to record private use.1,2
- Align salary certificate and bookkeeping: Check whether sections 2.2, 13 and 15 of the salary certificate match the accounting entries and internal rules exactly.1,2
- Review owner and luxury vehicles separately: For shareholders, related parties and high-value vehicles, a separate review of cantonal practice is worthwhile.6
- Reconcile annually and correct early: Reconcile VAT returns with the annual accounts and correct identified issues before the end of the financial year or before issuing salary certificates.7
Once this process is properly defined, you not only reduce the risk of corrections. You also gain reliable standards for new employees, additional vehicles, home office arrangements and future audits.1,2,5,7
FAQ about business expenses
Does every company need an approved expense policy?
Not necessarily in every case. However, if you do not only reimburse strictly actual expenses according to the FTA standard, but also work with flat-rate allowances, representation expenses or your own company rules, an expense policy approved by the canton of domicile provides significantly more legal certainty. Approved policies are recognised across cantons, provided the model templates are followed.1
Can flat-rate expenses be set freely?
No. Flat-rate expense reimbursements must roughly correspond to the actual expenses incurred. This is exactly where corrections often arise if flat rates are too high, too generic or paid without a solid underlying rationale.1
How is the private-use portion for a company car currently calculated?
In principle, at 0.9% of the purchase price excluding VAT per month, or 10.8% per year, but at least CHF 150 per month. A contribution paid by the employee reduces the add-back. In leasing cases, the cash purchase price or object price specified in the contract is generally decisive. For VAT purposes, the 0.9% flat rate is also relevant.1,2,5
Is a logbook enough instead of the flat-rate method?
Yes, actual recording of private use is possible. However, the logbook must be kept in a way that clearly separates private and business mileage. Commuting is treated as a private journey.2
Does an expense policy also apply to self-employed persons?
The current FTA model expense policy expressly applies to employees for whom a salary certificate must be issued. For self-employed persons, the focus is instead on the correct allocation to business or private assets and the proper calculation of the private-use portion.3,6
