Lump-sum expense allowances are typically used to reimburse senior executives or field staff for minor expenses (usually individual out-of-pocket expenses of up to CHF 50.–) and entertainment expenses (e.g., for private invitations at home). Beneficiaries may then no longer claim such minor expenses up to CHF 50.– per occurrence as actual expenses.
Examples of what is covered by entertainment expenses
According to the model regulations, minor expenses that are covered by entertainment expenses include, in particular:
- Invitations from business partners to small meals at a restaurant or at home
- Gifts for Invitations from Business Associates (e.g., flowers and alcoholic beverages)
- Snacks (excluding lunch and dinner on business trips)
- Tips
- Business calls made from personal phones
- Invitations for Employees and Gifts to Employees
- Contributions to institutions, organizations, etc.
- Incidental expenses for and on behalf of customers without receipts
- Small expenses incurred during meetings and sessions
- Tram, bus, and taxi rides
- Parking Fees
- Business trips by private car within the local area (30-km radius)
- Postage and telephone charges
- Dry Cleaners