The salary certificate is an official document that every employer in Switzerland must issue annually to their employees. It summarises all benefits paid and forms the basis of the employee's tax return. This guide details the structure of the CSI form, the rules for valuing benefits in kind, the deadlines to observe and the most common errors to avoid.
What is the salary certificate?
The salary certificate is a nationally standardised document, prepared according to the form of the Swiss Tax Conference (CSI). It certifies all salary and ancillary benefits paid by the employer during a calendar year. Each employee receives a copy to complete their tax return, and the tax authority may request a copy at any time.
The obligation to prepare a salary certificate applies to all employers, regardless of company size: from an SME with a single employee to a large corporation. It covers all employment relationships, including fixed-term contracts, paid internships and board mandates. For an overview of payroll management, see our payroll management service.
The CSI form: structure and main sections
The CSI salary certificate is divided into several sections, identified by letters and numbers. Here are the 13 main sections that the employer must complete carefully:
Header and general information (Letters A to G)
The upper part of the form contains the identification information:
- Letter A: employee's AHV number (13-digit number in format 756.XXXX.XXXX.XX)
- Letter B: employment period (from-to) and employment rate
- Letters C to F: employer and employee contact details
- Letter G: certificate type (ordinary, corrective, supplementary)
Section 1: Gross salary
Section 1 includes the total gross salary paid during the calendar year. This amount includes base salary, 13th salary, commissions, bonuses, premiums and any other cash remuneration. Holiday and public holiday compensation for hourly workers is also included. This amount corresponds to that declared for social charges calculation.
Section 2: Ancillary salary benefits
This section lists benefits in kind granted to the employee:
- 2.1 Meals / accommodation: the value of free meals is CHF 1,580 per year for lunch only (CHF 6,320/year for full board). Free accommodation is valued according to local scales.
- 2.2 Private use of company vehicle: 0.9% per month of the vehicle's purchase price (excluding VAT), i.e. 10.8% per year. For a vehicle purchased at CHF 50,000, the annual private portion is CHF 5,400.
- 2.3 Other benefits: transport passes, mobile phone for private use, discounts on company products beyond the usual franchise.
Section 3: Employee participations
Section 3 concerns stock options, free shares and other participations granted to employees. Valuation must follow the directives of FTA Circular No. 37. Listed employee shares are valued at the market price on the acquisition date, less any discount for blocking period.
Section 4: Capital benefits
This section covers exceptional payments related to the end of employment: severance payments, loyalty bonuses in capital form. These benefits are taxed separately at a reduced rate.
Section 5: Private portion of expenses
If the employer covers expenses with a private component (for example, a general SBB pass also used for leisure), the private portion must be declared here. The amount is added to the employee's taxable income.
Sections 10 to 13: Contributions and professional expenses
| Section | Content | Remark |
|---|---|---|
| 10. AHV/IV/APG/ALV contributions | Employee share of 1st pillar contributions | Amount deducted from gross salary |
| 11. Ordinary BVG contributions | Employee share of occupational pension | According to the pension plan |
| 12. BVG buybacks | Buybacks of contribution years | Deductible from taxable income |
| 13. Professional expenses | Travel, meals, miscellaneous expenses | According to flat rate or actual expenses |
The amounts in sections 10 to 13 are deducted from gross income to determine net taxable income. Accurate completion is essential to avoid subsequent corrections by the tax authority. For contribution details, see our social charges guide.
Benefits in kind: valuation rules
Correct declaration of benefits in kind is one of the most sensitive aspects of the salary certificate. Here are the main rules:
Company vehicle
When a company vehicle is made available for private use, the benefit is valued at 0.9% per month of the purchase price of the vehicle (excluding VAT), i.e. 10.8% per year. This amount is declared in section 2.2, regardless of actual private mileage. Private fuel costs covered by the employer do not reduce this flat-rate amount.
| Vehicle purchase price (excl. VAT) | Monthly private portion (0.9%) | Annual private portion (10.8%) |
|---|---|---|
| CHF 30,000 | CHF 270 | CHF 3,240 |
| CHF 50,000 | CHF 450 | CHF 5,400 |
| CHF 80,000 | CHF 720 | CHF 8,640 |
Free meals
Meals covered by the employer are valued on a flat-rate basis according to AHV scales:
- Lunch only: CHF 1,580 per year (approximately CHF 7.25 per meal for 218 working days)
- Breakfast and dinner: CHF 4,740 additional per year
- Full board: CHF 6,320 per year
Free accommodation
Accommodation provided free of charge is valued at the local market rental value. If the employee pays a reduced rent, only the difference between the market value and the rent paid is declared as a benefit in kind.
Professional expenses: flat rate or actual expenses
The treatment of professional expenses on the salary certificate depends on the method chosen by the employer:
Expense flat rate (without expense regulations)
Without approved expense regulations, the employer pays a flat rate that is considered taxable salary. This flat rate appears in section 1 (gross salary) and the employee deducts actual professional expenses in their tax return. The standard flat-rate deductions are:
- Travel expenses: according to the home-to-workplace journey
- Meal expenses away from home: CHF 3,200/year (if meals taken away from home)
- Other professional expenses: 3% of net salary (min. CHF 2,000, max. CHF 4,000)
Expense regulations approved by the tax authority
Expense regulations approved by the cantonal tax authority allow the payment of non-taxable flat-rate allowances for current expenses (meals, telephone, small expenditures). Actual expenses (travel, hotels, entertainment) are reimbursed against receipts. This approach is indicated by ticking box F of the salary certificate. It considerably simplifies the declaration.
Deadlines and transmission
Compliance with deadlines is a legal obligation for the employer:
- Delivery to employee: the salary certificate must be given to the employee by 31 January of the following year at the latest (art. 127 para. 1 let. b DBST).
- Departure during the year: the certificate must be prepared within 30 days of the end of the employment contract.
- Transmission to the tax authority: the employer transmits certificates to the tax authority upon request or, depending on the canton, systematically via the electronic platform (e-transmission).
- Electronic transmission: more and more cantons require or encourage electronic transmission of salary certificates via the ELM standard (Einheitliches Lohnmeldeverfahren).
Common errors to avoid
Experience shows that certain errors recur frequently in the preparation of salary certificates. Here are the most common and how to avoid them:
1. Omission of benefits in kind
This is the most frequent error. The provision of a company vehicle, free meals or accommodation must be systematically declared. The tax authority carries out cross-checks and an omission can lead to a supplementary assessment with default interest.
2. Double deduction of expenses
When the employer has approved expense regulations (box F ticked), the employee can no longer deduct flat-rate professional expenses in their tax return for the categories covered by the regulations. Clear mention on the certificate is essential to avoid this double deduction.
3. Incorrect calculation of BVG contributions
The amount declared in section 11 must correspond exactly to the BVG contributions actually deducted. An error in calculating the coordinated salary or contribution rate distorts the employee's tax deduction. See our social charges guide for the current BVG parameters.
4. Confusion between 13th salary and gratification
The contractual 13th salary appears in section 1 with ordinary salary. A discretionary gratification also appears there, but it must be distinguished if it has an exceptional character. Capital benefits related to departure appear in section 4.
5. Non-declaration of employee participations
Shares, stock options and other participation instruments must be declared at the time of acquisition (shares) or exercise (options). Omission of these elements is considered tax evasion.
Special cases
Part-time work
The salary certificate for a part-time employee contains the same information as for full-time. The employment rate must be indicated in letter B. Social contributions are calculated on the actual salary. If the employee has several employers, each issues a separate certificate.
Joining or leaving during the year
In the case of joining or leaving during the year, the certificate covers only the actual employment period. The exact dates must be indicated in letter B. AHV and BVG contributions are calculated pro rata. The employee will receive a certificate from each employer to reconstitute their total annual income.
Expatriates and withholding tax
For employees subject to withholding tax, the salary certificate must mention the amount of withholding tax deducted. Expatriates benefiting from a tax ruling may have specific sections (expatriation expense flat rate, relocation costs). The rules for declaring expatriation allowances vary by canton.
Board members and directors
Attendance fees and remuneration paid to board members are subject to a separate salary certificate. They are declared in section 1 and subject to AHV contributions. The distinction between employed and self-employed activity is determined by the compensation fund.
The salary certificate and the tax return
The salary certificate is the cornerstone of the employee's tax return. All information reported must be consistent with the deductions claimed by the taxpayer. The tax authority systematically carries out consistency checks between the salary certificate and the tax return.
For employees with multiple sources of income, each certificate is reported separately in the return. The cumulative effect can impact the marginal tax rate and certain capped deductions.
Simplified management with a fiduciary
Preparing salary certificates requires in-depth knowledge of tax and social rules. Entrusting this task to a fiduciary guarantees document compliance and avoids penalties. Our payroll management service includes the preparation of all salary certificates and their electronic transmission to the tax authorities.