FABI - Limitation on the Deduction of Travel Expenses

On February 9, 2014, the people approved the "Financing and Expansion of Railway Infrastructure" (FABI) initiative. Consequently, a maximum of CHF 3,000 per year can be claimed for commuting expenses in the direct federal tax since January 1, 2016.

Commuting Allowances

If the employer covers the full cost for trips between home and workplace, the FABI adjustment should not be made through the payroll statement but within the framework of the private tax return. It does not matter whether a private vehicle or public transportation is used for commuting. The amount should be declared under item 2.3 as a professional expense allowance, thereby increasing both the gross and net salary.

Field Employees with Company Cars

For field employees who have a company car, the difference between the theoretical commuting deduction and the FABI commuter flat rate is accounted for. Since field staff often go directly to the customer from home instead of first going to the workplace, the theoretical commuting deduction should be reduced by these days. In this case, the employer must certify the percentage of field service, which requires the correct recording of field service as well as home office days.

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