What are the tax obligations for self-employed (Selbstständigerwerbende) persons in Switzerland?

Self-employed persons in Switzerland (Selbstständigerwerbende) are taxed on their net business profit — gross revenue minus deductible business expenses. Unlike employees, they file their own taxes using their actual profit and loss accounts or a simplified revenue-minus-cost calculation. All ordinary business expenses are deductible: materials, staff costs, office rent, equipment, insurance, accounting and legal fees, and a reasonable portion of a home office if used exclusively for business.

AHV contributions are a major cost for the self-employed. The full combined AHV/IV/EO rate of 10.1% (plus FAK family allowance fund contribution) is paid on net earned income, with no employer to share the burden. Contributions are calculated by the AHV compensation office (Ausgleichskasse) based on declared net income. Importantly, AHV contributions paid are themselves deductible from taxable income, creating a circular calculation resolved by a standard formula.

Self-employed persons have the option to join a pension fund (BVG) voluntarily or, if they have employees, must enrol those employees compulsorily. Pillar 3a is also available and especially valuable: without a BVG, the self-employed can contribute up to 20% of net income (max CHF 36,288 in 2025), offering a powerful tax deferral tool. VAT registration is required if annual turnover exceeds CHF 100,000. Late payment of AHV provisional instalments results in default interest.

This is general information only, not professional tax advice. Consult a qualified tax professional for your specific situation.