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The Swiss tax system emphasizes federalism, where the Confederation, cantons, and municipalities levy taxes, and the federal constitution regulates the competencies. For the purpose of standardization, the Tax Harmonization Law exists.

Owners of sole proprietorships can use their accrued pension fund money when switching to self-employment, but not the founders of a corporation or a limited liability company. To receive it, they must prove their self-employment to the pension fund.

Waiving salary is possible in joint-stock companies and limited liability companies, but obligations such as minimum social security contributions still exist. An alternative to salary could be dividends, however, this entails the problem of double taxation.

The taxation of a sole proprietorship avoids economic double taxation, unlike in the case of corporations. Disadvantages arise from the tax treatment in the event of business cessation or sale.

The distinction between private and business expenses is essential for correct taxation in the case of self-employed individuals and partnerships, where only business costs are deductible. Specific evidence is necessary to prove the business nature of expenses such as travel, vehicle use, or work clothing.

In Switzerland, sole proprietorships and partnerships are not taxed directly, but the tax burden falls on the individual partners. Taxes are levied on the income and partly on the assets of the partners at the federal, cantonal, and municipal levels.

Business owners must make an adjustment for input tax when using their own products privately, for which input tax has been claimed. This serves the correct allocation and tax treatment of such transactions.

Notional input tax can be deducted for untaxed agricultural products or used individualizable items. Conditions for this are domestic reference and entrepreneurial use.

The withholding tax in Switzerland aims to prevent tax evasion by taxing returns on capital assets and certain other income at the source. Taxpayers can reclaim this tax, provided they declare their income correctly.