Per Diem

Switzerland’s per diem compliance regulations for 2025 primarily revolve around corporate and individual taxation, with specific rules on business expenses, travel allowances, and deductions.

Swiss businesses often follow guidelines set by the Federal Tax Administration (FTA) regarding tax-deductible business expenses, including per diems for employees traveling for work. For 2025, these rates can vary based on the location and duration of the travel. Employers must ensure that per diems do not exceed the standard tax-free daily allowances, which differ by canton and depend on whether the travel is domestic or international.

Employers should also be aware that the FTA mandates detailed documentation, including the justification for the per diem amounts and the specific purpose of travel. If the allowances exceed the set limits or lack appropriate documentation, the excess amounts might be taxable.

Additionally, the Swiss government has regulations on how cross-border commuters and their home-office arrangements will be taxed, which may indirectly impact per diem practices, especially when workers are telecommuting across borders​ pwc.ch bluewin.ch

For more detailed and up-to-date regulations, referring to the official Swiss government or tax authority websites is advised, as these rules can be subject to updates.

Mileage

In Switzerland, business mileage expenses are generally tax-deductible, but the requirements depend on whether the expenses are for business or private purposes. Companies or self-employed individuals must maintain clear documentation, including vehicle logs, to distinguish between personal and business mileage. The Swiss Federal Tax Administration (FTA) allows reimbursement for business-related travel expenses, but there are specific rates and limitations that need to be adhered to.

The tax-exempt expenses for business travel, including mileage, are only deductible if they are substantiated with proper receipts and records. In the case of using personal vehicles for business, the reimbursement must be within a reasonable amount, typically based on a per-kilometer rate. For 2025, this rate needs to be calculated in accordance with the FTA’s rules, which also specify that any business vehicle used for personal travel requires careful separation of costs between private and business use​ bazg.admin.ch kmu.admin.ch

For a detailed look at the rules, including the exact deductible amounts, you can refer to the official Swiss government sources like the Federal Tax Administration’s guidelines.

Key points include:

• Domestic Travel:
  • Train tickets: First class reimbursed with receipts, 50% of second class without receipts.
  • Private vehicle use: Compensated at CHF 0.70 per km if pre-approved.
  • Accommodation and meal expenses: Covered up to specified limits, negotiable if exceeding guidelines.
• International Travel:
  • Airfare: Economy class required; excess baggage reimbursed if pre-approved.
  • Train tickets: First class reimbursed with receipts.
  • Additional costs (phone calls, visas, airport taxes): Reimbursed with receipts or a 2% lump sum (max CHF 1,000).
  • Accommodation and meal expenses: Covered based on FDFA guidelines.

For further details, refer to Swiss FDFA Guidelines​

Paperless

Switzerland allows for paperless and digital record-keeping for business purposes, provided that businesses meet specific requirements outlined by the Swiss Code of Obligations and other related regulations.

For digital archiving, the Swiss regulations emphasize integrity, authenticity, and availability of documents. The records must be maintained in such a way that they cannot be altered without detection, which can be achieved using methods like digital signatures, encryption, and secure data carriers. Non-modifiable data (like encrypted files) can be stored more flexibly than modifiable ones, which require additional safeguards, such as digital timestamps and audit trails​ nexova.ch lexr.com

Moreover, digital records need to be stored for a minimum of 10 years, which is the legal retention period for accounting records in Switzerland​ lexr.com

In summary, while Switzerland supports paperless record-keeping, businesses must implement measures to guarantee the integrity and accessibility of their digital records throughout their retention period.

Meals, Benefits & Allowances

In Switzerland, meal allowances and deductions for business-related meals are regulated with varying details depending on the canton. Generally, for employees working outside their home or at locations where returning home for lunch is not feasible, meal costs can be deducted. Here’s an overview of how this works:

1. Standard Meal Deductions:
   • The usual deduction is CHF 15 per day for each workday if meals are purchased away from home, up to a maximum of CHF 3,200 per year. If the employer provides subsidized meals (e.g., through a canteen), the deduction is reduced to CHF 7.50 per day, with a maximum deduction of CHF 1,600 annually​
     smartetax.ch blog.findea.ch
2. Shift and Night Work:
   • For those working in shifts or night shifts (at least eight hours long), the full allowance of CHF 15 per day (or CHF 3,200 annually) is applicable for each shift worked, regardless of whether the employer offers subsidized meals​
     blog.findea.ch
3. Additional Costs:
   • Some cantons allow for additional meal costs under specific circumstances (e.g., external accommodation costs when commuting)​
     smartetax.ch

These deductions are typically applicable to full-time workers, with proportional adjustments for part-time employees. It’s essential for individuals to verify the rules specific to their canton, as deductions can vary across Switzerland​ ajooda.ch smartetax.ch

Sales tax rates

For business travel in Switzerland in 2025, the applicable VAT (Value-Added Tax) rates are as follows:

• Standard VAT Rate: 8.1%
• Reduced VAT Rate: 2.6% (applies to essential goods and services such as food and books)
• Special VAT Rate for Accommodation: 3.8% (valid until December 31, 2027)

Businesses incurring VAT on expenses during travel, such as hotel stays, meals, and transport services, may be able to reclaim VAT, subject to Swiss VAT regulations and conditions. The Swiss VAT system requires businesses with an annual turnover exceeding CHF 100,000 to register for VAT compliance. Additionally, non-resident businesses providing taxable supplies in Switzerland must also register and adhere to VAT requirements​ globalvatcompliance.com vatcalc.com

The revised VAT regulations also introduce measures aimed at digital businesses. One notable change is the imposition of tax liabilities on electronic platforms starting January 2025, ensuring that sales via such platforms are taxed properly. The tax scope has also been adjusted to handle new digital models more effectively, while some previously taxable activities have been exempted​ grantthornton.ch globalvatcompliance.com

For more detailed guidance on VAT and related changes, you can visit the official Swiss Federal Tax Administration page.