How does my business set travel expense allowances for international travel?

If your company is based in Switzerland, there are no per diem guidelines to follow for international travel, no matter whether you travel to South Africa, Spain, or Sweden. We recommend that you check out our corporate travel policy template to help you create a travel expense policy that works for your business.

What is the mileage allowance?

The limit for car expenses in Switzerland is 70 cents per kilometer.

Per diem rates in Switzerland: a brief guide

Using per diem rate guidelines for expenses is a simple and effective way to compensate employees when they travel for business. Whether employees are travelling to France, Germany, Austria, or even further afield to Australia, understanding the guidelines on rates per diem in Switzerland ensures consistent, compliant, and accurate expense management.

Here, we break down Switzerland’s per diem guidelines and answer the most pressing questions.

What are per diem rates for business travel?

Per diem rates for business travel are fixed amounts that employers pay employees to cover the costs of accommodation, meals, and incidental expenses when travelling for business.

Governments usually set benchmark allowances for travel that consider factors such as average maximum accommodation costs, the general cost of living, and any travel regulations. Per diem rates typically vary based on the business travel destination and, in some cases, the location of the company, especially in major cities and business hubs.

Ready to get your business travel expenses in order? Explore our useful guide to setting up a business travel budget.

Are per diem rates mandatory?

One of the biggest advantages of following per diem rates is that employees don’t need to keep and submit all receipts to be reimbursed for travel expenses.

However, businesses don’t have to follow per diem rates. They can decide whether employees should submit expense reports or they can choose which per diem rates to apply.

For example, they can follow some per diem guidelines (such as those for meals and accommodation) while setting out their own budgets for accommodation and flight costs in a corporate travel policy.

What are the most important things to know about per diem rates in Switzerland?

The most important thing to know about per diem rates in Switzerland is that there are none. Unlike countries such as Belgium, Finland, and Italy, the Swiss government does not provide any specific rates, allowances, or limitations, leaving it up to businesses to determine their own per diem allowances for business travel and reimbursements.

In Article 327a of the Code of Obligations within the Swiss Civil Code, the following rules regarding employee expenses apply:

Businesses must reimburse all expenses incurred by employees during work-related activities, as well as necessary living expenses for activities performed away from the employer’s premises.

A fixed amount, such as a per diem or a weekly/monthly allowance, can be used to reimburse expenses, as long as it’s specified in an individual agreement, standard employment contract, or collective employment contract and covers all necessary costs.

Any agreement that requires the employee to cover all or part of these necessary expenses is invalid.

Additionally, Article 327c sets out the rules surrounding payment dates for employee expenses:

Based on the expense report submitted, expenses are typically reimbursed alongside the employee’s salary, unless a shorter period is customary or has been prearranged.

When an employee regularly incurs expenses as part of their job, the employer must provide regular advances to cover these costs, with payments made at least once a month.

Take control of employee expenses and per diem allowances with leading travel and expense management software.

If there are no official per diem rates in Switzerland, what business travel expenses are covered?

In the absence of specific per diem guidelines in Switzerland, Swiss tax authorities recognize several rules for reimbursable business travel expenses.

Recognised business travel expenses

General travel expenses: These include transport costs and incidental expenses like parking tickets and tolls related to business travel. Reimbursement is provided only for travel outside the designated place of work and excludes daily commutes to the office.

Accommodation costs: Expenses for overnight stays during business trips are generally eligible for reimbursement. If an employee works away from home for an extended period, they may also be reimbursed for reasonable leisure and well-being expenses, such as gym passes or show tickets.

Meals purchased during business travel: Meal costs incurred while travelling are typically eligible for reimbursement. They can be reimbursed either based on actual expenses or at a flat rate, however, there may be maximum allowances determined by both the employer and tax regulations.

Unrecognised business travel expenses

Personal travel expenses (including the cost of regular commutes to the office)

Traffic fines, including those incurred during business trips

Expenses that don’t have the correct supporting documentation

Effective and flat rate expense reimbursement in Switzerland

Although Switzerland’s government does not set per diem rates, there are two ways in which businesses can handle the travel expense reimbursement process:

Effective expense reimbursements

This method reimburses employees for the amounts they actually spent, requiring detailed documentation and receipts to support each claim.

lthough this approach reimburses employees with the exact amounts they’ve spent, it also increases the administrative burden for both employees and finance departments.

Flat-rate reimbursements

This approach allows employers to provide fixed reimbursement allowances for specific expense categories.

While this method eliminates the need for such detailed supporting documentation, it can also result in overpayment or underpayment of the actual expenses incurred.

Examples of expenses that can be reimbursed using the flat-rate method:

Meals with business partners and customers

Snacks during business travel (excluding lunch and dinner allowances)

Public transport costs during business travel

Car expenses for frequent use of a personal vehicle for business purposes

It’s important to note that flat-rate expense reimbursements are usually used for smaller expenses up to CHF 50 (or CHF 100 in some cases) and are aimed at reducing complex expense and reimbursement processes.

Are there any expense reimbursement limits in Switzerland?

Yes, the Federal Tax Administration (FTA) sets out several expense reimbursement limits for both effective and flat-rate expenses:

The effective reimbursement limit for lunch is CHF 35 with a receipt

The flat-rate allowance for lunch is CHF 30

The mileage limit for car expenses is set at 70 cents per kilometer

For small expenses, there is a maximum daily flat rate allowance of CHF 20

Per diem rates in Switzerland: No fixed rates, but rules still apply

Unlike other countries like Canada, The Netherlands, Norway, and Ireland, the Swiss government doesn’t provide its own per diem guidelines. Businesses are responsible for setting their own travel budgets (including meal expenses, lodging rates, and mileage rates) and using either the effective or flat-rate reimbursement method.

Plus, there are no differences between the major cities — reimbursements remain the same, no matter whether your business is based in Bern, Geneva, or Zurich.

Without per diem rates as a benchmark, it can be challenging to manage business travel expenses effectively, especially for international travel. TravelPerk simplifies business travel management and seamlessly integrates with your expense management system.

Manage business travel like a pro. Step up your travel management game today.

Frequently Asked Questions

How does my business set travel expense allowances for international travel?
What is the mileage allowance?

Per diem rates in Switzerland: a brief guide (2024)

What are per diem rates for business travel?

Are per diem rates mandatory?

What are the most important things to know about per diem rates in Switzerland?

If there are no official per diem rates in Switzerland, what business travel expenses are covered?

Recognised business travel expenses

Unrecognised business travel expenses

Effective and flat rate expense reimbursement in Switzerland

Effective expense reimbursements

Flat-rate reimbursements

Are there any expense reimbursement limits in Switzerland?

Per diem rates in Switzerland: No fixed rates, but rules still apply

Manage business travel like a pro. Step up your travel management game today.

Frequently Asked Questions

How does my business set travel expense allowances for international travel?

What is the mileage allowance?

Make business travel simpler. Forever.

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