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Additional Expense Regulations for Flat Rate Allowances

Key points and template

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Key Points Included in These Additional Expense Regulations

Which employees are entitled to receive flat-rate allowances with the possibility to define several employee categories
Amount of the flat-rate allowance, including different amounts for each employee category (if applicable)
Can be used as a supporting document for a ruling request

Use These Additional Expense Regulations if …

… you already have regulations for the reimbursement of actual expenses and, in addition to these, would like to provide for the payment of flat-rate allowance to senior employees

… you would like to ensure that flat-rate allowances are paid out only in accordance with tax and social insurance provisions (these regulations are based on an official template issued by the Swiss Tax Conference)

… you would like to request a ruling for the tax management of your employees’ flat-rate allowances

What are These Additional Expense Regulations?

In general, employers reimburse the expenses that are effectively incurred by their employees. The reimbursement of expenses must be made in accordance with the respective expense regulations and requires the submission of original receipts. Since each expense is handled and reimbursed individually, the reimbursement of actual expenses is administratively very cumbersome. For this reason, expenses can be reimbursed with a fixed monthly compensation (so-called flat-rate allowance).

However, only senior employees are entitled to receive a flat-rate allowance. Generally, senior employees, due to their mostly representative function, increasingly incur expenses in connection with potential or existing customers of the company. As a consequence, the process of reimbursing expenses is significantly simplified by providing a flat-rate allowance. The flat-rate allowance covers all minor expenses in Switzerland and abroad, up to CHF 50.

The flat-rate allowance should be set so that it roughly corresponds to the actual expenses. Generally, this amounts to between 3 – 5 % of the gross salary including bonuses. The corresponding regulations concerning the payment of flat-rate allowances (so-called additional