Kantonales Steueramt
Head Corporate Tax
Taxation in the Canton of Zurich
The approval procedure for expense payment rules
Contact:
regarding expense payment rules
Cantonal Tax Authorities of Zurich
Division North
Secretariat, „expense payment rules“
Bändliweg 21
CH 8090 Zürich
Tel +41 (0)43 259 56 01
www.steueramt.zh.ch
Switzerland - Canton of Zurich - an attractive tax system
Information sheet on the approval procedure for expense payment
rules
For official use please refer to the German original
Table of contents
1
Expense payment rules of Any Company Ltd ................................................ 3
1.1
General information ....................................................................................................................... 3
1.1.1 Applicability ............................................................................................................................... 3
1.1.2 Definition of the term "expenses" .............................................................................................. 3
1.1.3 Principle governing expense refunds ........................................................................................ 3
1.2
Cost of travel .................................................................................................................................. 4
1.2.1 Rail travel .................................................................................................................................. 4
1.2.2 Travel by bus and tram ............................................................................................................. 4
1.2.3 Air travel .................................................................................................................................... 4
1.2.4 Use of private cars/taxis for business ....................................................................................... 4
1.2.5 Company car (if available) ........................................................................................................ 4
1.3
Cost of meals ................................................................................................................................. 5
1.4
Cost of accommodation ................................................................................................................. 5
1.4.1 Hotels ........................................................................................................................................ 5
1.4.2 Private accommodation ............................................................................................................ 5
1.5
Further expenses ........................................................................................................................... 5
1.5.1 Entertainment ............................................................................................................................ 5
1.5.2 Minor expenses ......................................................................................................................... 6
1.5.3 Credit cards (if used)................................................................................................................. 6
1.5.4 Mobile phones (if used)............................................................................................................. 6
1.6
Administrative requirements .......................................................................................................... 6
1.6.1 Advances on expenses ............................................................................................................. 6
1.6.2 Statement of expenses and signature ...................................................................................... 6
1.6.3 Reimbursement of expenses .................................................................................................... 7
1.6.4 Keeping expense receipts and settlements .............................................................................. 7
1.7
Validity............................................................................................................................................ 7
1.8
Entry into force ............................................................................................................................... 7
2
Supplementary rules for senior staff of Any Company Ltd .......................... 8
2.1
2.2
2.3
2.4
2.5
2.6
Principle ......................................................................................................................................... 8
Senior staff ..................................................................................................................................... 8
Lump-sum expense payments ....................................................................................................... 8
Limits on lump-sum expense payments ........................................................................................ 9
Validity............................................................................................................................................ 9
Entry into force ............................................................................................................................... 9
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Switzerland - Canton of Zurich - an attractive tax system
Information sheet on the approval procedure for expense payment
rules
Cantonal tax authorities grant mutual recognition to expense payment rules that have been approved by a
company’s domicile canton (see point 54 of the guidelines for filling out the salary certificate). It is sufficient to have expense payment rules approved solely in a company’s domicile canton. Such rules should
be drawn up as shown in the following specimen expense payment rules (or the specimen supplementary
rules for senior staff).
Points 49 to 60 of the guidelines for filling out the salary certificate explain how to declare expense refunds. The declaration of expenses is made easier if the conditions of point 52 are fulfilled or if approved
expense payment rules are submitted in conformity with point 54.
Employers in Zurich should send applications for approval to the Cantonal Tax Authorities of Zurich, Division North, Secretariat, „expense payment rules“, Bändliweg 21, 8090 Zurich (phone 043 259 56 01). A
complete copy of the expense payment rules should be included with the application and – if lump sum
payments are involved – a list of all who will receive such payments, providing details of the full name,
function/title, annual gross salary (including any bonuses), proportion of external activities (this means
outside the usual work place), details of the lump sums the company intends to pay (must correspond,
according to point 58 of the above mentioned guidelines, approximately to the effective expenses incurred), whether or not a company car is at employee’s disposal, possible ownership structure (if > 10 %)
and the responsible contact person including direct telephone number and email.
1
Expense payment rules of Any Company Ltd
1.1
General information
1.1.1
Applicability
These rules apply to all employees in an employment relationship with Any Company Ltd.
1.1.2
Definition of the term "expenses"
For the purpose of this document, expenses are expenditure incurred by employees while representing
the interests of their employer. All employees are obliged to keep their expenses to a minimum as a condition for expense refunds. Unnecessary expenses may not be accepted by the company and must be
paid by employees themselves.
In the main the following types of expenses incurred for business reasons may be refunded:
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1.1.3
Cost of travel
Cost of meals
Cost of overnight accommodation
Other costs
(see section 1.2)
(see section 1.3)
(see section 1.4)
(see section 1.5)
Principle governing expense refunds
In principle, all expenses must be settled on the basis of the original receipts for the expense incurred.
Lump-sum payments may only be made as an exception and for the following types of expense in particular.
In case of continuous absences of more than four weeks (e.g. maternity/paternity leave, military service,
illness/accident, but excluding holidays), monthly and/or annual lump-sum payments have to be reduced
accordingly.
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1.2
Cost of travel
1.2.1
Rail travel
All employees are entitled to travel first class by rail while on business in Switzerland and abroad. If required, the company may issue a personal half-price season ticket to employees.
Employees who frequently travel by rail on business can, if required, be issued a free rail pass. Holders of
free rail passes may not claim expenses incurred for private cars and may not deduct the cost of travel to
work on their tax returns. A check must be placed in the appropriate box on the annual salary certificate
(box F of the salary certificate).
1.2.2
Travel by bus and tram
A tram or bus ticket may be placed at the disposal of employees if needed for business. Employees can
be issued special tickets such as a "Regenbogen"-Travelcard or a regional pass as required. As a general rule, those who have a "Regenbogen"-Travelcard pass may not deduct the cost of travel to work on
their tax return. A check must be placed in the appropriate box on the annual salary certificate (box F of
the salary certificate).
1.2.3
Air travel
All employees may travel “business class” when traveling by plane. Employees may fly first class if they
need to travel urgently or if this is required to represent the company. Flying miles, bonus points and
premiums, etc., credited to employees by airlines after business trips should be used principally for other
business trips.
1.2.4
Use of private cars/taxis for business
As a general rule public transport should be used.
Costs incurred for private cars/taxis may only be refunded if using them results in substantial savings in
time or costs to the company or if it would be unreasonable to expect the individual concerned to use
public transport. If private cars/taxis are used despite adequate public transport being available, only the
actual cost of public transport may be refunded.
Up to
10,000 km per year, the rate per kilometer is
CHF 0.70
Over
10,000 km per year, the rate per kilometer is
CHF 0.60
1.2.5
Company car (if available)
A company car may be placed at the disposal of members of management or employees.
The company car may also be used privately. Amounts may be set off as appropriate in the annual salary
certificate (section 2.2 of the salary certificate).
The purchase price of the car and all maintenance costs may be paid by the company. The employee
pays for the cost of petrol when the car is used for holidays. For private use of the car, 0.8 % per month of
the car’s purchase price (excluding VAT) may be set off in the salary certificate (gross salary), with a minimum of CHF 150.-- per month.
A check must be placed in the appropriate box in the annual salary certificate (box F of the salary certificate).
Employees who can use a company car and are engaged primarily or partially in external representative
activities, the percentage of the external representative activity must be noted in the annual salary certificate at section 15 under the remarks.
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Switzerland - Canton of Zurich - an attractive tax system
If an employee is entitled to purchase the company car at a later point in time, any difference between the
actual purchase price and the market value (purchase price according to Eurotax [blue Eurotax]) is considered to be part of the gross taxable salary.
1.3
Cost of meals
If an employee is on a business trip or if an employee is compelled for other reasons to eat at a place
other than the usual workplace, the employee is entitled to a refund of the effective costs; these may not
exceed the following approximate values:
Breakfast (if the employee leaves the hotel before 07.30 a.m. after staying overnight, provided the cost of breakfast is not included in hotel costs)
CHF 15.--
Lunch
CHF 35.--
Evening meal
(for overnight stays or if the employee returns after 07.30 p.m.)
CHF 40.--
If employees spend between 40% and 60% of their working time away from their office and because of
this receive compensation for lunch, a check must be placed in the appropriate box on the salary certificate (box G of the salary certificate).
If employees spend more than 60% of their working time away from their office and because of this receive compensation for lunch, the following sentence must be noted on the annual salary certificate at
section 15 under the remarks: “Lunch paid by employer”. For employees who are subject to source tax
the deduction regarding additional costs of meals (at the moment CHF 1’600.-- or monthly CHF 133.--)
which is already considered in the source tax tariff will then be added to the gross salary taxed at source.
1.4
Cost of accommodation
1.4.1
Hotels
As a rule medium-priced hotels should be used for accommodation.
Occasionally, and provided this is in the interests of the business, a higher category of hotel may be chosen.
The actual costs incurred for hotels may be reimbursed according to the original receipts; incidental private expenses (e.g. private phone calls) must be deducted from the hotel bill.
1.4.2
Private accommodation
If employees are accommodated by friends, the actual cost of a present for the host may be reimbursed
up to a maximum of CHF 80.--.
1.5
Further expenses
1.5.1
Entertainment
As part of customer care or maintaining contact with business associates the company may demand that
employees entertain such individuals and invite them for meals.
As a rule, restraint should be exercised with respect to such invitations. The actual cost incurred must be
commensurate with the business involved. In choosing an appropriate locality, the importance of the customer or business partner to the company and local practice should be taken into account.
The actual costs incurred may be reimbursed; however, the following points should be clearly stated:
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Switzerland - Canton of Zurich - an attractive tax system

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1.5.2
Names and positions of all people present, the names of the companies involved and the
business relationship to Any Company Ltd (including company employees)
Name and location of the venue
Date of the invitation
Purpose of the invitation
Minor expenses
Minor expenses, such as parking fees, business telephone calls while on company business, etc., are
generally refunded, provided these are incurred in the course of business and original receipts are produced.
As an exception, if the original receipts are not available or it is unreasonable to expect expenses to be
reported in such a form, one voucher may be submitted.
1.5.3
Credit cards (if used)
Members of management may be issued a personal credit card in their own name. The costs arising from
use of this credit card are paid by Any Company Ltd.
This credit card may only be used for business expenses.
Furthermore, this credit card may not be used for payment of any expenses covered by lump-sums (especially those up to CHF 50.-- of receivers of lump-sum payments). Otherwise the employee has to be
debited with the respective amount.
1.5.4
Mobile phones (if used)
A business mobile phone can be provided to employees who frequently travel for business purposes and
rely on a mobile phone. For private use, amounts may be set off as appropriate in the annual salary certificate. One third of the monthly total cost (excluding additional costs arising from business, e.g. roaming
fees, premium services, apps, etc. in the case of flat rate contracts) will be set off in the annual salary
certificate (section 2.3 of the salary certificate with remark “Privatanteil Mobiletelefon“).
For employees (excluding lump-sum beneficiaries) without a business mobile phone who frequently travel
for business purposes and depend on a phone are entitled to receive a monthly allowance of CHF 30.-- or
alternatively one third of the effective monthly total costs, provided they are incurred in the course of
business and original vouchers are produced. The applicable version has to be determined by the employer and is valid for one year. If the monthly allowance is applied, the annual total disbursement will be
noted on the salary certificate under section 13.2.3 and shall be categorized as “Fixspesen”. Additional
costs arising from business, e.g. roaming fees, premium services, apps etc. can only be reimbursed if
original receipts are produced.
1.6
Administrative requirements
1.6.1
Advances on expenses
Advances on expenses have to be approved by the responsible superior before they can be drawn.
1.6.2
Statement of expenses and signature
Expenses will only be settled if they are submitted on the form stipulated by management.
The statement must be submitted after the event for which expenses are incurred; however, this must be
at least once per month; the form should be submitted with the appropriate receipts to the employee’s
superior for approval and signature.
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Receipts, which must be submitted with the statement, must be originals; these include receipts, checkout
slips, credit card payment slips, proof of transport costs, etc.
1.6.3
Reimbursement of expenses
(Here the company may state the preferred method of reimbursement.)
1.6.4
Keeping expense receipts and settlements
For auditing purposes expense reports and all relevant receipts must be kept for ten years.
1.7
Validity
These expense payment rules were submitted to the Cantonal Tax Authorities of Zurich for approval and
were accepted.
On the basis of this approval Any Company Ltd does not detail the actual expenses on the salary statements.
Any future modification of the expense payment rules must be submitted to the Cantonal Tax Authorities
of Zurich for approval. The tax administration must also be informed if the expense payment rules are
annulled or replaced by another set of rules that are not yet approved.
1.8
Entry into force
These expense payment rules apply as of January 1, 2016.
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2
Supplementary rules for senior staff of Any Company Ltd
2.1
Principle
The general expense payment rules also apply to senior staff unless otherwise stated in these supplementary regulations.
2.2
Senior staff
The following categories are defined as senior staff for the purpose of these rules:





2.3
Managing directors
Acting managing directors
Directors
Acting directors
Vice-directors
Lump-sum expense payments
Senior staff employed in the above positions incurs more expenses for entertainment, acquiring business
and in the interests of good customer relations than other staff. Receipts for expenses incurred representing the company and for other minor expenses are sometimes impossible to obtain or only with difficulty.
To cover such expenses in a rational manner, senior staff receives an annual lump-sum payment.
This lump-sum payment covers all minor expenses up to CHF 50.-- for each incident involving expenses;
each outlay is regarded as a single incident. Various outlays occurring at different times cannot be accumulated if these are incurred within the scope of one business assignment (e.g. a journey) (no accumulation permitted). Persons who receive lump-sum payments for minor expenses not exceeding CHF 50.-- in
each case may no longer claim refunds of such expenses (petty sums).
The following expenses are regarded as minor expenses for the purposes of these supplementary rules:
















Inviting business partners for snacks in restaurants
Inviting business partners to meals at home regardless of the actual costs involved (the costs of
a catering service may be submitted as an expense)
Presents given when invited to visit business friends
Small meals (lunch and evening meals on business trips may be submitted as an expense)
Business calls from private phones
Tips
Invitations to and presents for employees
Contributions/fees to institutions and associations etc. (not limited to CHF 50.--)
Incidental expenses incurred on behalf of and with clients, without receipts being produced
Minor expenses during conferences and meetings
Tram, bus, rail and taxi fares
Parking fees
Local business trips with a private car (radius 30 km)
Fees for porters and for cloakrooms
Post and telephone expenses
Dry cleaning
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Switzerland - Canton of Zurich - an attractive tax system
2.4
Limits on lump-sum expense payments
The maximum amount payable per year for lump-sum expense payments is shown below:
Managing directors
CHF ........
Acting managing directors
CHF ........
Directors
CHF ........
Acting directors
CHF ........
Vice-directors
CHF ........
The lump-sum paid for expenses must be noted in the section “Representation” (“Repräsentation”, section 13.2.1 on the salary certificate). If employees reduce the volume of employment, lump-sum expenses
should be reduced proportionately. Approved lump-sum expense payments are not subject to taxation at
source, if applicable.
2.5
Validity
These supplementary expense payment rules were submitted for approval to the Cantonal Tax Authorities of Zurich and were accepted.
Any modification of the supplementary expense payment rules must be submitted in advance to the Cantonal Tax Authorities of Zurich for approval.
2.6
Entry into force
The supplementary expense payment rules apply as of January 1, 2016.
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