Company Car Switzerland 2026: Private Use Share and Tax

In short (as of November 2026): If you also use a company car privately, you declare 0.9% of the purchase price per month (excluding VAT, including optional extras), at least CHF 150. For a car costing CHF 50'000, that is CHF 450 per month or CHF 5'400 per year. The amount also covers commuting, which is why box F is ticked on the salary certificate. The alternative is a complete logbook at 75 centimes per private kilometre.

Company cars in Switzerland: are they worthwhile?

For many entrepreneurs and managers, a company car is an attractive tool, both practically and for tax purposes. But the rules are detailed and mistakes can be expensive.

In this guide, we explain how company cars are treated in Switzerland, which models are suitable and which pitfalls you should avoid. For your specific case, it does not replace advice from your fiduciary.

Company car: purchase, leasing or private vehicle?

Option 1: company car as a business asset

The vehicle belongs to the company. The costs (acquisition, running, insurance, maintenance) are booked as business expenses. The employee or owner may also use the vehicle privately, but must then declare a private use share as income.

Option 2: leasing through the company

The company leases the vehicle and the leasing instalments are booked as an expense. The private use share is calculated in the same way. The cash purchase price stated in the leasing contract is what counts.

Option 3: private vehicle with expense reimbursement

The vehicle belongs to the employee, and the company reimburses the kilometres driven for business. The salary certificate guidelines and the model expense regulations of the Swiss Tax Conference use 75 centimes per km. This option is simpler administratively, but only attractive with low business use.

The private use share: how it is calculated

The private use share is the tax-relevant value of private use of a company car. The salary certificate guidelines have two methods:

Flat-rate method (most common option)

The flat rate is 0.9% of the purchase price per month (including optional extras, excluding VAT), at least CHF 150 per month. That makes 10.8% per year.

Example calculation:

• Vehicle purchase price: CHF 50'000 (excl. VAT)
• Monthly private use share: CHF 450 (0.9% of CHF 50'000)
• Annual private use share: CHF 5'400

This amount is declared under section 2.2 of the salary certificate. It counts as income for tax purposes and is also salary subject to AHV contributions.

Important: The private use share also includes commuting, so box F is ticked on the salary certificate. You cannot additionally deduct commuting costs in your tax return.

Actual method (with logbook)

Alternatively, you can keep a logbook. The private use share is then the private kilometres including commuting, multiplied by 75 centimes. With 8'500 private kilometres per year, that is CHF 6'375. In this case, box F is not ticked.

This is worthwhile when actual private kilometres are low, for example for field staff who travel almost exclusively on business.

Requirements:

• Logbook kept daily, fully and without gaps
• The entries must show how many kilometres were driven privately and how many on business
• Commuting counts as a private journey

When no private use share applies

If private use is significantly restricted, for example by permanently installed equipment for transporting tools, no private use share is added.

Tax advantages of a company car

For the company

• Expense deduction: Depreciation, fuel, service, insurance and taxes are business expenses
• Input tax deduction (VAT): VAT-registered companies can claim input tax, but owe VAT on the private use share
• Depreciation: The vehicle is depreciated, clarify the permitted rate with your fiduciary
• Predictable costs: With leasing, the monthly costs are fixed

For the employee

• No personal investment: No equity needed for the purchase
• Less effort: Depending on the arrangement, the company covers insurance, service and tyres
• Costs paid: The company car replaces private car costs

Pitfalls and common mistakes

Mistake 1: underestimating the private use share

Many employees are surprised by how much the private use share increases their taxable income. For a vehicle costing CHF 60'000, that is CHF 6'480 per year. At an assumed marginal tax rate of 25%, that would be CHF 1'620 in additional tax. Your actual rate depends on income, place of residence and marital status.

Mistake 2: forgetting about commuting

The private use share covers commuting. This means you cannot deduct commuting costs as professional expenses in your tax return. If you have a long commute, you lose a potentially large deduction here.

Mistake 3: forgetting VAT on the private use share

Private use is relevant for VAT. With the flat rate, which requires predominantly business use of more than 50%, the amount is treated as including VAT. Of CHF 450 per month, that is around CHF 33.70 at 8.1% (8.1 divided by 108.1). If the company forgets this settlement, it risks a back payment at a VAT audit.

Mistake 4: choosing too expensive a vehicle

A luxury company car increases the private use share massively. Every extra CHF 10'000 of purchase price means CHF 1'080 more income per year. Check whether a cheaper model would serve the same purpose.

Mistake 5: no logbook with low private use

Field staff who drive almost only on business may pay too much with the flat rate. A logbook takes effort, but can pay off. Calculate both methods for your driving profile.

Which vehicle as a company car?

Selection criteria

• Acquisition costs: Direct effect on the private use share
• Fuel consumption: Affects running costs
• CO₂ emissions: Depending on the canton relevant for motor vehicle tax, and also for your image
• Residual value: A higher residual value means lower effective depreciation
• Insurance: Premiums vary by model

Company cars at Car Trade24

The VW Passat is popular as an estate for long distances and plenty of luggage, more compact options are the VW Golf and the Hyundai i30. For short trips and low acquisition costs, the Skoda Fabia is a good fit. You can see the current prices on the model pages, they come directly from our stock.

Electric vehicles as company cars

Electric cars offer their own advantages as company cars:

• Depending on the canton, lower motor vehicle tax (ask the road traffic office)
• Often lower energy costs than with petrol or diesel
• No oil changes and less brake wear
• Positive company image

The private use share is calculated in the same way (0.9% of the purchase price), which can be significant for expensive electric vehicles. Use our leasing calculator to work through different scenarios.

Company cars for the self-employed (sole proprietorship)

As a self-employed person with a sole proprietorship, special rules apply:

• The vehicle belongs either to business assets or to private assets
• With business assets: the costs are business expenses, private use is added as a private use share
• With private assets: the kilometres driven on business are claimed as an expense

It is best to clarify how to classify your vehicle with your fiduciary.

Checklist: optimising your company car for tax

1. Choose a vehicle with good value for money (keep the private use share in mind)
2. Book leasing instalments and depreciation correctly
3. Declare the private use share under section 2.2 of the salary certificate and set box F correctly
4. Settle VAT on the private use share
5. Keep a logbook if private use is low
6. Treat the commuting deduction correctly in your tax return
7. When changing vehicles: consider residual value and book profit

Business customers at Car Trade24

At Car Trade24, we advise business customers on choosing the right company vehicle, from sole proprietorships to SMEs. Book a test drive in Wohlen AG, or work out the rate directly with the leasing calculator.

Frequently asked questions

How high is the private use share for a company car in 2026?

0.9% of the purchase price per month, excluding VAT and including optional extras, at least CHF 150. That is 10.8% per year.

Is commuting included in the private use share?

Yes. The flat rate covers private use and commuting. Box F is ticked on the salary certificate, and there is no deduction for commuting.

Which purchase price applies to a leased vehicle?

The cash purchase price stated in the leasing contract. The leasing instalment itself is not the basis for the calculation.

What does the logbook method cost?

You multiply the private kilometres including commuting by 75 centimes. With 8'500 kilometres, that is CHF 6'375 per year. The logbook must be kept daily, fully and without gaps.

From what purchase price does the minimum amount no longer apply?

From CHF 16'667. Below that, CHF 150 per month must be declared, above it 0.9% of the purchase price.

Conclusion

A company car can be attractive for tax purposes, but only if you know and follow the rules. The private use share, VAT and the right choice of vehicle are decisive. Get advice from your fiduciary and choose a vehicle that suits your business needs, not just your personal taste.