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In Switzerland, natural persons are subject to income tax, which is levied at the federal level as well as in the cantons and municipalities. Individuals become liable for tax through personal or economic ties to Switzerland, such as through residence or employment.

Whether income from pension provisions is taxable is defined by the form of payment (annuity or lump sum); annuities are fully taxable in Switzerland. Contributions to mandatory social insurance are tax-deductible, with annuities and one-time lump sum payments being taxed differently.

Income from self-employed activity includes ordinary and extraordinary income and determines the taxable profit (Art. 18 para. 1 DBG). Ordinary income comes from the core business, while extraordinary income results from asset realizations.

Depreciation is only recognized for tax purposes if it is business-related and properly recorded. Tax authorities provide guidelines for depreciation rates to standardize.

Home ownership and rental income must be declared as taxable income, with the imputed rental value being relevant for owner-occupiers. Maintenance costs can either be deducted as a flat rate or based on actual expenses.

Income from private assets such as dividends is taxable and must be declared in the tax return. Income and possible participation deductions must be entered in the securities directory.

Income from non-independent employment must be taxed, although certain professional expenses are deductible. These include travel, meal expenses, and further education costs, but not general living expenses.

Filling out the tax return is made easier by collecting documents step by step and proving deductions with receipts. Guidance and electronic options effectively support the process.

Self-employed individuals can record tax-deductible provisions that reduce profit. A prerequisite for this is a legally regulated, business-related justification.