Can I Claim Company Vehicle (Firmenwagen) as a Business Expense in Switzerland?
A company vehicle is fully deductible for the business. However, where a director or employee uses the vehicle for private journeys (including commuting), a monthly benefit-in-kind (geldwerter Vorteil) of 0.9% of the purchase price must be added to their salary for income tax and AHV purposes — the so-called private use charge.
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What Federal Tax Administration (ESTV/FTA) says
Company vehicles are depreciated at 40% per year (declining balance) for tax purposes. Running costs (fuel, insurance, maintenance) are fully deductible. Where private use occurs, the ESTV standard is to add 0.9% of the vehicle's purchase price per month to the employee/director's taxable salary (the 'Privatanteil'). This applies regardless of actual private km — it is a fixed formula. If a logbook shows zero private use, no Privatanteil applies (but this is difficult to sustain in practice for a vehicle kept at home).
When you can claim
- Purchase price depreciated at 40% declining balance annually
- Leasing costs fully deductible in the year of payment
- Fuel, insurance, servicing, road tax — 100% business proportion
- Electric vehicle charging infrastructure at company premises — 100% deductible
- Only business km if a detailed logbook is maintained and vehicle stays at business premises
When you cannot claim
- Privatanteil (0.9% per month of purchase price) — this is added to salary, not deducted
- Fines or penalties — not deductible under any circumstances
- Purchase price above reasonable market value if artificially inflated
Good to know
Pro tip: For electric vehicles, the lower running costs partially offset the Privatanteil disadvantage. Consider whether the cost-benefit of a company vehicle versus a higher salary plus private car ownership actually favours the company vehicle when all taxes are modelled. For low-mileage founders, a private car with CHF 0.70/km business reimbursement is often simpler and more tax-efficient.
Related expenses
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