At its meeting on 29 May 2018, the National Council approved a motion by the Commission for Transport and Telecommunications of the Council of States (KVF-SR), according to which the Federal Council should be mandated to propose the necessary legal changes to ensure that a portion of the income from the use of a company car for commuting is also compensated at the administrative level and that the deduction of travel costs for these taxpayers is excluded. The flat rate of currently 9.6% of the vehicle purchase price can be increased moderately for this purpose.
The background to this motion is the referendum of 9 February 2014, in which the bill on the financing and expansion of the railway infrastructure (Fabi) was approved. Since 1 January 2016, persons in gainful employment can only claim a maximum travel expense deduction of CHF 3,000 per year for direct federal tax purposes. Owners of business vehicles must therefore, in addition to the private share of 9.6% of the vehicle purchase price, also pay tax on the costs of travel between home and place of work in excess of CHF 3,000 as income. Around half of the cantons also impose a limit on the deduction of travel expenses.
Erich Ettlin, member of the Council of States, defended himself against this practice by submitting motion 15.4259, "Fabi. Excessive administrative burden on business vehicle owners". The motion was to instruct the Federal Council to instruct the FTA not to implement the administrative practice envisaged from 2016 onwards, which leads to additional income taxation of non-self-employed persons with a company car. The National Council, in its capacity as the second chamber, had approved the motion in its session of 27 January 2017 with one amendment (see our contribution of 28 February 2017). On 12 December 2017 the motion was rejected by the Council of States by 16 votes to 23 with 1 abstention.
However, the original intention of Erich Ettlin, member of the Council of States, was confirmed by Motion 17.3631, "Fabi. Excessive administrative burden on business vehicle owners" is also included. The purpose of the motion is to keep the administrative burden of tax returns for commercial enterprises as low as possible. By means of a moderate increase in the lump sum of the vehicle purchase price, with which the private use of the business vehicle is compensated (and without the creation of a travel expenses deduction), the constitutionally required equal treatment of all taxpayers is to be ensured. The Council of States had adopted this motion on 12 December 2017 by 28 votes to 12 with 0 abstentions (see also our contribution of 17 December 2017).
On 29 May 2018, the National Council also passed Motion 17.3631, "Fabi. Excessive administrative burden on business vehicle owners" of the Commission for Transport and Telecommunications (KVF-SR) adopted by 117 votes to 65 with 1 abstention. The minutes of the National Council meeting are available here.
