Tax treatment of investments in self-employment

Learn how you can optimally record investments for tax purposes as a self-employed person.

2016

Tax treatment of investments in self-employment

We are often asked how investments in one's own company should be considered for tax purposes when self-employed. Read our article on the two variants available for recording business expenses.

Recording of Expenses or Investments

Up to a turnover of CHF 500,000, self-employed individuals are required to prepare at least an income and expenditure statement for a calendar year (so-called simple accounting) and include it with the corresponding tax return. For the consideration of investments related to self-employment, there are two options available:

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Withholding Tax in Switzerland: What Private Individuals Need to Know

The reference tax is a special value-added tax in Switzerland for foreign services, relevant when the provider is not locally subject to VAT. Private individuals must declare and pay this themselves if services exceed CHF 10,000 per year.

Abschaffung des Eigenmietwerts

Der Eigenmietwert, ein umstritten konzipiertes fiktives Einkommen für Eigenheimbesitzer seit 1934, bleibt trotz neuer Abschaffungsbestrebungen bestehen. Diese Steuer trägt zu staatlichen Einnahmen bei, jedoch gibt es Kritik und Debatten über dessen Gerechtigkeit und Auswirkungen auf den Tourismus.

Self-reporting without penalty for natural persons

A voluntary disclosure in Switzerland allows for the subsequent disclosure of undeclared income to avoid criminal consequences, but only once and under specific conditions. Completeness, unawareness of prior information from the authorities, and payment of back taxes are essential for a penalty-free resolution.