Amendments to the ordinance on professional costs 2022

Initial situation
The Federal Ordinance on Business Expenses has been amended effective January 1, 2022. Employees with a company vehicle will now be charged a flat private fee for private use of a company vehicle equal to 0.9 percent (instead of the previous 0.8 percent) of the vehicle purchase price per month as salary. The purchase price of the vehicle in question corresponds to the new purchase price, excluding VAT, but including any special equipment (services are not included). This lump sum now covers the use of the vehicle for commuting and other private purposes. It is still possible to account for actual private use with a logbook and declare it accordingly. In principle, this change affects the direct federal tax. However, cantons have the option to adopt this adjustment in their cantonal regulations.

Consequences for employers
The employer must take several aspects into account. For example, the private share must be adjusted in accounting so that it is properly recorded and accounted for. In addition, attention should be paid to the following, as the payroll will be filled out correctly starting in 2022: The adjusted private share (10.8 percent of the vehicle purchase price, excluding VAT) should be shown in item 2.2 of the payroll. This amount continues to be considered as wages in kind and is subject to social insurance. In the future, the certification of the external service fee in the remarks (item 15) may be waived. Field F "free transportation between place of residence and place of work" still needs to be checked. Overall, these innovations should reduce the administrative work associated with payroll preparation. Further clarification is needed if there are cantons that do not take these changes into account in cantonal regulations. It is conceivable that employees in these cantons should be issued a separate certificate for field service days. Since the increase in the private fee for company vehicle use results in an increase in salary for affected employees, it is advisable to inform employees of this change in good time. Internal regulations or even employment contracts in which the previously applicable flat rate was stated should be adjusted. In view of possible further changes, it is advisable not to state the amount in internal regulations and employment contracts, but to refer to the legal provisions. The situation is different for expenditure regulations that have already been approved by the canton: These carry the "old" flat rate amount; however, cantons that have adopted the new regulations in their directives will automatically apply the new amount of 0.9 percent as of 1.1.2022.

Other aspects
In the area of VAT, the increase in the private quota results in slight additional costs for employers. The annual private quota (company vehicle purchase price × 10.8%) includes VAT. Due to the new higher lump sum, a higher amount of VAT must be charged than before. The increase also has consequences for social security contributions: The private share is considered income on which social benefits are payable. These deductions therefore increase slightly for both employers and employees.

"In a nutshell."
1 As a result of the amendment to the Ordinance on Occupational Costs of Direct Federal Taxation, the monthly private fee for the use of a company vehicle is now 0.9 percent.

2. the new entry is stored in the accounting software.

3. in the compilation of the wage statement, the relevant changes should be observed.

4. the increase in the private share of VAT means an additional expense for employers.

EXPERTsuisse SME Practical information 01/2022