Controllable income from self-employment

Learn how regular and extraordinary income affect the taxable profit of self-employment.

2015

Controllable income from self-employment

Taxable income from self-employment consists of ordinary and extraordinary income from the enterprise. This income significantly determines the profit of the enterprise, which is then subject to income tax for the business owner (Art. 18 para. 1 DBG).

The ordinary income

Ordinary business income includes all revenues that arise from entrepreneurial activity. This primarily includes income from the sale of goods and services. Ordinary income also includes neutral and other revenues such as property income from business assets (e.g., rental income from a business property). For real estate dealers, profits from the sale of land are also counted as ordinary income from self-employment.

The extraordinary income

The law determines that all extraordinary income is also counted towards taxable income from self-employment (Art. 18 para. 2 DBG). These revenues do not come from entrepreneurial activity, but from:

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