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Payment into pension fund is possible until shortly before capital withdrawal

Payment into pension fund is possible until shortly before capital withdrawal

Vehicles, machines, mobile phones or notebooks can be used for both private and business purposes. In the case of mixed use, the so-called preponderance method is applied. This method determines whether the item is allocated entirely to business or private assets based on how it is predominantly used, i.e. more than 50%. It is not possible to split the asset into both categories.

 

In practice, this allocation is often difficult and is decided on a case-by-case basis. In addition to the preponderance method, criteria for allocation include proof of use: For vehicles and similar assets, logbooks or other records of use may be required. Typical usage patterns also serve as evidence.

 

  • The purpose for which the asset was acquired and the way in which it is used are important criteria.
  • Proper accounting and documentation of use is necessary to prove the allocation. Invoices, contracts and other documents can serve as proof.
  • There must be a clear separation between business and private activities.
  • The tax regulations may vary from canton to canton.

 

These criteria help companies and private individuals to correctly allocate their assets and utilise the corresponding tax benefits.