On 9 February 2014, 62% of Swiss voters said yes to the bill for financing and expansion of the railway infrastructure FABI.
The Federal Council decided that the constitutional amendments and the connected decrees would become effective on 1 January 2016. This bill included a tax component that limits professional expense deductions with regard to travel costs. Since 1 January 2016 (thus for tax declaration 2016, which is to be handed in during 2017) the following regulations apply:
Employee without a company car
As of the tax year 2016, deduction of driving costs in connection with direct federal tax is limited to CHF 3'000, and in canton Bern in connection with the cantonal and community tax limited to CHF 6'700 (other cantons may have different limits). This limitation is automatically taken into account within the scope of tax assessment.
Calculation Examples:
Example 1:
An employee has a SBB general travel pass that costs CHF 3'655 (GA in 2016). Up to now this entire amount could be claimed as driving costs on the professional expenses position. Now direct federal tax deduction of maximally CHF 3'000 and canton and community tax of maximally CHF 6'700 is possible. On the level of federal taxes an additional income of CHF 655 results for the employee. On level of cantonal and community tax the entire costs for the general travel pass can still be claimed.
Example 2:
An employee commutes with by car from his or her residence to the place of work. The distance amounts to 46 kilometres (both ways). Up until now the deduction for travel costs was calculated like this:
46 kilometres x 220 workdays x CHF 0.70 = CHF 7'084.
Now the deduction is calculated the same, except that only up to CHF 3'000 for direct federal tax and CHF 6'700 for cantonal and community taxes are deductible.
Employee with a company car
If your employer provides a company car, your salary statement will list a monetary value part as additional taxable income as per clause 2.2. This offset is compensation for the private usage of the company car but does not include commuting back and forth to work. Box F on the salary statement is ticked off to indicate that no deduction for travel costs from home to work and back can be made.
If you have been provided with a company car for your commute to work and back, this is a monetary value payment that constitutes wage income. As per the 2016 tax period this income (CHF 0.70 per commuted kilometre) is declared as income from dependent employment (in the Canton Bern tax declaration under clause 2.21: “compensation which is not included in net salary”). Full time employment as a rule is assumed to be 220 workdays. If you work full or part time externally (i.e. sales staff, customer service, mechanics, work force on building sites or external projects), you may only calculate the monetary amount for the days that you use the company car to drive from your place of residence to your usual, permanent place of work. Your employer will indicate the percentage of external work you do under clause 15 of your salary statement.
Calculation examples:
Example 1:
An employee commutes by company car from his place of residence to his place of work. The total distance amounts to 46 kilometres (back and forth). Under clause 2.21 of the Canton Bern tax declaration, the following compensation should be listed:
46 kilometres x 220 workdays x CHF 0.70= CHF 7,084.
New is that owners of company cars may now declare travel costs on Form 6. The deduction of these costs is a maximum of CHF 3,000 for direct federal taxes, and CHF 6,700 for cantonal and community taxes respectively. The following example results in an additional taxable income of CHF 4,084 on the direct federal tax level and an additional CHF 384 taxable income on the cantonal and community one.
Example 2:
An employee works externally for a company and commutes 50% of the time by company car from his place of residence to work and 50% of the time he travels directly from home to customers. The total distance to work is 46 kilometres (back and forth). Clause 15 of his salary statement lists “50% external work”. Under Clause 2.21 of the Bern tax declaration, the following compensation should be listed:
46 kilometres x 220 workdays x CHF 0.70 x 50% external work = CHF 3'542.
New is that owners of company cars may now declare travel costs on Form 6. The deduction of these costs is a maximum of CHF 3,000 for direct federal taxes, and CHF 6,700 for cantonal and community taxes respectively. The following example results in an additional taxable income of CHF 542 on the direct federal tax level for this part time external employee. There is no resulting additional taxable income on the cantonal and community level.
Applicability?
By way of an 18 December 2015 motion, Council of States member Erich Ettlin instructed the Federal Council to direct the national tax authorities not to implement the intended administrative practice, which leads to additional income taxation of employed persons who drive a company car. This motion was accepted by the Council of States at their meeting on 27 September 2016. The National Council accepted the motion on 27 February 2017 with the following amendments: The Federal Council is commissioned to propose the necessary legal changes, so that on the administrative level a portion of income for the use of a company car for commuting to work is compensated with 9.6% of the vehicle purchase price for the private use of a company car.
It is therefore an open question how long the current applicable regulation will be valid.
