# Can I claim Company Vehicle (Firmenwagen) as a business expense in Switzerland?

**Partially claimable.** 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.

Typical amount: Privatanteil example: a CHF 50,000 car = CHF 450/month (CHF 5,400/year) added to taxable salary. Vehicle depreciation: CHF 50,000 × 40% = CHF 20,000 in year 1.

## 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.

Source: https://www.estv.admin.ch/estv/de/home/direkte-bundessteuer/juristische-personen/wegleitung-steuererklaerung/merkblaetter.html

## Related expenses

- [Business Travel (Geschäftsreisen)](https://accounts-os.com/ch/expenses/business-travel-ch)