Mileage rates in Switzerland for 2023
In Switzerland, an employee is entitled to reimbursement when using his private vehicle for business journeys (e.g. client visits). This is stated in article 327b of the Code of Obligations, an amendment to the Swiss Civil Code. More specifically, this article stipulates that when the employer agrees that the employee uses his motor vehicle for business purposes, the employee is entitled to reimbursement of the normal running, maintenance costs, tax, insurance and wear and tear costs, incurred in the performance of his work.
Mileage rates 2023
To cover all related expenses, it is practical to make use of a flat rate per kilometre. In Switzerland, there is no uniform flat rate that applies to all companies. Touring Club Swiss (TCS) publishes a yearly overview of applicable rates based on the type of car. The average kilometre cost for 2023 is CHF 0,75 per kilometre. If the employee’s vehicle consumes more than average, this could be discussed with the employer. With regards to tax purposes, there is no maximum amount defined, however, the reimbursements should be reasonable and correspond to the actual costs. If you are in doubt about your mileage reimbursement policy as an employer, you can always contact your local tax office.
Example: Barbara is working on a construction site and needs to pick up some materials. She drives 19 kilometres for this. Her employer uses the average flat rate of CHF 0,75 per kilometre. She will be reimbursed CHF 14,25 (=19 km x CHF 0,75/km) for this business journey.
Employees can declare these travel expenses as incorporated in their tax returns. Whether there is a maximum amount of travel expenses allowed in the tax return, depends on the applicable canton.