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Self-employed individuals in Switzerland are subject to social insurance, depending on their place of work and residence as well as citizenship in Switzerland, EFTA, or the EU. Various cases regulate the insurance obligation and exceptions can be inquired about at the social insurance authorities.

As of January 1, 2016, the EO contribution rate will decrease from 0.5% to 0.45%, thereby employers/employees will pay a total of 10.25%. Self-employed individuals will now pay 9.65% towards AHV/IV/EO.

Foreign workers from EU-17/EFTA and EU-8 countries are required to register from the first day in certain sectors, and always require a permit if the duration exceeds 90 days. Workers from EU-2 and third countries are subject to a permit requirement from the first day in specific sectors.

Medical and accident costs can be deducted from taxes, minus a deductible and amounts not covered. Receipts and a summary of costs are required for claiming the deduction.

The employment of foreign workers requires, depending on their origin, a registration or approval obligation. Work assignments must be reported at least 8 days before the activity begins.

Employees in Switzerland are subject to the Swiss social security system, which depends on the place of work and nationality. Special cases such as secondments remain assigned to their home social security system.

In Switzerland, withholding tax is directly collected by the employer when the employee is foreign and without permanent residence in the country. Various types of employees, such as artists or business managers from abroad, are affected by this.

Switzerland levies a value-added tax (VAT) of 8.0% on most products, with reduced rates of 2.5% and 3.8% for specific goods and services. Certain services and exports are exempt from VAT.

Switzerland encourages high-income foreigners who do not work with flat-rate taxation, by taxing living costs instead of worldwide income. From 2016, the tax base was increased to seven times the rental income and a minimum expenditure of CHF 400,000 was set.