Expense regulations in Switzerland: advantages & introduction - MKY GROUP

What you need to know

Traditionally, expenses are paid out effectively to employees in a company. Collecting and documenting all documents individually and preparing the expense report takes valuable time — time that you would rather spend on more important work. There is an alternative to that. Expense regulations can be submitted to the tax administration for review so that you can pay out the expenses in a lump sum and thus also save accounting costs. Want more details? Read on!

What are expense regulations?

Expenses regulations serve to regulate travel, food and accommodation costs as well as representative expenses in particular. Such regulations must be approved by the competent tax administration, as expenses do not represent taxable income. Once the regulations have been approved, beneficiaries can no longer effectively bill small expenses of up to CHF 50.-.

Specific examples of expenses could include:

- Public transport tickets
- Meal costs
- Parking fees, mileage compensation, fuel charges

Benefits of an expense policy:

- Saves time and money
- The lump sum of expenses is tax-free (not taxable as income)
- There are no social security expenses for the lump sum

So if you have employees who regularly make customer appointments or are on the road representative of your company, expense regulations make sense, as there is no need to process and reimburse small expenses in accounting.

Would you like to find out more about expense regulations or introduce one in your company? Our experts from MKY Group AG are happy to help you.

Disclaimer: The content of this blog post is for informational purposes only and does not constitute professional advice. Each individual case should be reviewed individually and we recommend that you seek professional advice for specific questions.