Company cars in Switzerland: taxation – what companies need to know

10 April 2026

Whether it is a single company car or an entire company fleet, business cars are a fixed part of our corporate world. Depending on the operational purpose, the company car is used differently by employees. In many cases, it may also be used in private life. This has tax and administrative implications – both for the company itself and for the employee.

Everything you need to know about the taxation of company cars in Switzerland and whether a car subscription for business customers is an attractive alternative to purchase or leasing is explained in this blog.

Disclaimer – liability notice for information

We ask for your understanding that the information provided by us is without claim to completeness or accuracy and does not replace tax advice. A fiduciary or tax advisor can best advise you regarding your personal tax situation and the applicable – varying – cantonal regulations.

What types of usage exist for company cars in Switzerland?

A company car can either be assigned permanently to a specific employee or made available as a pool car for multiple users.

If the car is assigned permanently to an employee, private use (including commuting) is usually permitted. This private share is considered taxable benefits in kind (salary in kind). Billing is done either as a lump sum of 0.9% of the car purchase price (excluding VAT) per month, or based on actual private kilometres using a fully maintained logbook. Both methods directly affect income tax and social security contributions. More about how to correctly tax your private car can be found here.

Pool cars, on the other hand, are used by various employees exclusively for business purposes. Private use, including regular commuting between home and work, is generally prohibited. For the employer, all maintenance, leasing, and operating costs are fully deductible as business expenses. To prove exclusive business use to the tax authorities, keeping a logbook for pool cars is strongly recommended.

What tax rules apply to company cars in Switzerland?

In Switzerland, the private use of a company car represents a taxable benefit in kind. As soon as a company provides a car to an employee that can also be used privately (including commuting), a monetary benefit arises that must be declared as income.

Two federally recognised methods are available to assess this private share:

The lump-sum method Each month, 0.9% of the car purchase price (excluding VAT, minimum CHF 150) is added as a private share. Since 2022, this rate also covers commuting costs, meaning they no longer need to be declared separately on the salary certificate.
The effective method Here, usage is calculated based on actual private kilometres driven. This requires a complete and detailed logbook, documenting every journey (business vs private). The recommended TCS kilometre rate (currently approx. CHF 0.75) is typically used.

Both methods directly affect social security contributions and the employee’s income tax.

What does “benefit in kind” mean for a company car?

A benefit in kind is a non-cash benefit provided by the employer that is treated like salary. Since the employee saves the cost of owning a private car through the private use of a company car, this benefit is considered AHV-liable income.

Can commuting costs be deducted in the tax return?

No. If you are provided with a company car and box “F” (free transport) is ticked on the salary certificate, commuting is considered covered by the employer. Therefore, no additional commuter deduction can be claimed in the personal tax return.

Important background:

Since 2022, the taxation of commuting is already included in the 0.9% lump sum. Previously, commuting had to be added separately as income. This is no longer required.

How does the lump-sum taxation of company cars work in Switzerland?

The lump-sum method is the most common form of taxation for company cars, as it eliminates the need for a logbook.

Private use (including commuting) is taxed at 0.9% of the car purchase price per month (excluding VAT). A minimum of CHF 150 per month applies.

Example calculation:

For a purchase price of CHF 50,000, the monthly taxable benefit is CHF 450 (0.9%). This results in CHF 5,400 per year being declared as income.

Calculation of the monetary benefit for employees: the logbook method

With the effective method, the employee only pays for actual private kilometres. This method is subject to strict requirements:

Mandatory logbook: A complete logbook must be kept throughout the year, documenting every trip (business, private, and commuting).
Calculation basis: Costs per private kilometre are based on full car costs. The TCS rate is typically used (approx. CHF 0.72–0.76 depending on car type).
Billing process: Monthly payroll often uses an estimated value (advance payment). At year-end, final reconciliation is done based on the logbook.
Suitability: Due to high administrative effort, this method is only recommended for very low private usage. In most cases, the lump-sum method (0.9%) is standard.

If the employee covers all costs of the company car (including service, repairs, insurance, and fuel), no amount is added under section 2.2 of the salary certificate. Instead, section 15 must state: “Private share company car to be clarified in tax assessment.” Box F must still be ticked.

Because tax authorities assess this individually, this method is generally not recommended due to high administrative complexity.

What must be included in the salary certificate?

In addition to correct calculation, employers must declare the private use of the company car in the salary certificate:

Section 2.2 entry: The calculated private share (regardless of method) must be entered under section 2.2 (“Private share company car”). This amount is AHV-liable income.
Box F (free transport): This must be ticked when a company car is provided, confirming free commuting transport.
Tax consequence: Box F ensures that the employee cannot claim commuting deductions, as these costs are already covered by the employer.

Buying, leasing or subscribing to a company car – does it make a tax difference?

From a purely tax perspective, all options are considered business expenses. However, leasing – and especially a car subscription – improves liquidity, as no full purchase price must be paid upfront.

Advantages of car subscriptions for business customers

Beyond tax benefits, a car subscription offers several additional advantages for business customers in Switzerland:

Flexibility: Companies remain flexible thanks to adjustable monthly mileage packages.
Terms (3 months – 4 years): Ideal for seasonal staff, short-term projects, probation periods, or long-term employees.
Low administrative effort & full cost transparency: The all-inclusive subscription reduces administrative work, as insurance, taxes, registration, service, maintenance, and tyres are included in the monthly price.
Fast availability: If in stock, the car can be delivered within around 14 days – ideal for seasonal demand or bridging needs.

The car subscription therefore offers not only tax advantages compared to purchasing, but also practical and financial benefits that are particularly attractive for business customers, such as Luca from the company L&R.

If your Swiss company is interested in a car subscription, you can explore the car selection from Carvolution. Our team is also available for non-binding business consultations.