Tax guide 2025/2026

Tax deductions for Swiss self-employed people

For each cost, check business purpose, private use, supporting evidence and the correct tax treatment.

Commercially justified costs can reduce your business profit. That does not make every purchase deductible or guarantee a standard tax saving. Use this checklist to review expense categories, private use and personal pension deductions separately.

Key figures for 2025/2026

Item	Limit to check
Ordinary Pillar 3a contribution with pension fund membership	CHF 7,258 a year
Without pension fund membership	20% of relevant earned income, capped at CHF 36,288
General Swiss VAT turnover threshold	CHF 100,000, subject to relevant supplies and exceptions

New from 2026: Pillar 3a catch-up contributions

The first catch-ups are possible in 2026, subject to conditions, for gaps arising from 2025 onwards, looking back no more than ten years. Earlier gaps are excluded. You must first pay the full permitted ordinary contribution in the catch-up year and have qualifying AHV-liable earned income in both the gap year and catch-up year. The additional annual contribution is capped at the small Pillar 3a amount and cannot exceed the eligible gap. See the Federal Social Insurance Office's third-pillar guidance.

1. Materials and goods

Review raw materials, goods for resale, external services and delivery charges. Record inventory at the relevant opening and closing dates so changes are reflected correctly. Document stock losses, discounts and rebates rather than deducting unsupported estimates.

2. Personnel costs

Where commercially justified, review gross salaries, allowances, bonuses and benefits in kind, together with employer AHV/IV/EO, unemployment insurance, family allowance fund and occupational pension contributions as applicable. Keep payroll and contribution records. Your own private withdrawals are not an employee salary expense simply because money leaves the business account.

Swiss business office

Administrative and accounting documents

3. Depreciation, accruals and provisions

The following FTA A/1995 normal depreciation rates apply to book value. Rates on acquisition cost are generally halved. Check asset category, business use and special cantonal procedures.

Asset	Annual rate on book value
IT equipment	40%
Motor vehicles	40%
Business furniture	25%
Production machinery	30%
Tools	45%
Patents and licences	40%

Illustrative model: a CHF 2,000 computer depreciated at 40% of declining book value gives CHF 800 in year one, CHF 480 in year two and CHF 288 in year three. This illustrates the method, not automatic approval for any asset.

Financial analysis in Magic Heidi

Do not confuse accruals with provisions

Under accrual accounting, services received but not yet invoiced and prepaid costs are assigned to the correct period. They are not freely deductible tax provisions. Check the separate treatment under a permitted receipts-and-payments method.

A doubtful debt does not become automatically eligible for a 100% write-off after one year. Substantiate default risk and impairment. Tax provisions under Art. 29 of the Direct Federal Tax Act require statutory grounds; release provisions that are no longer justified. Business loan interest is distinct from non-deductible principal repayments.

4. General business expenses

Premises and home office

Review office or workshop rent, coworking, utilities and maintenance. For a home office, establish business need, actual use and a defensible allocation, checking cantonal practice. A floor-area ratio alone does not establish eligibility or guarantee a deduction.

Vehicles and transport

Document business and private use with a logbook or the applicable method. Review business-related fuel, repairs, insurance and travel costs. Do not assume a universal CHF 0.70 mileage rate for every self-employed person.

Marketing and administration

Review business advertising, social media, websites and hosting, printing, reasonable customer gifts, accounting and fiduciary fees, software subscriptions, office supplies and telecommunications. Mixed costs need a documented allocation.

5. Pillar 3a and retirement provision

Swiss security and retirement provision

Ordinary 2025/2026 limits are CHF 7,258 with pension fund membership, or without membership 20% of relevant earned income up to CHF 36,288. The latter is a ceiling, not a flat deduction available at any income.

Fictional catch-up example: someone with pension fund membership paid CHF 3,000 in 2025 rather than the permitted CHF 7,258. Subject to eligibility in both years and all remaining conditions, paying the ordinary CHF 7,258 in 2026 plus the CHF 4,258 eligible 2025 gap gives CHF 11,516. The pension institution reviews the application. This does not permit catch-ups for arbitrary years before 2025.

6. Private shares of mixed expenses

Only the business share qualifies. Document actual phone and internet use rather than relying on a supposedly safe 50–80% range. Vehicle allocation must follow the applicable method. Client hospitality needs receipts, participants and business purpose; an ordinary private meal does not become a business expense because you work on a laptop while eating it.

7. Common mistakes

Mixing personal and business transactions without a clear trail. A separate account can help.
Omitting small amounts, foreign business income or relevant bank interest.
Losing supporting documents: retain accounting records for the applicable period.
Booking family meals as client hospitality.
Using excessive depreciation without support.
Ignoring VAT: check relevant turnover, supplies and exceptions, not just total cash receipts. See VAT for freelancers.

Running your self-employed activity alongside a job? These deductions apply to you too: see our guide to being self-employed on the side.

8. Check your filing deadline

Read the notice and cantonal guidance for your tax period. Deadlines and extensions can differ by taxpayer, legal form and year. Apply in time. There is no universal CHF 100–150 late-filing fine: interest, reminders and sanctions have different conditions.

Before submitting your return

Check that business purchases are recorded, inventory is reconciled where applicable, depreciation and private shares are documented, and eligible Pillar 3a payments have reached the institution in time. Preserve supporting certificates and check the actual submission deadline.

Expense scanning in Magic Heidi

For ongoing organisation, you can scan receipts, review expense categories and check required exports. The features should support your workflow, not be treated as a guarantee that every recorded cost is deductible.

Frequently asked questions

Can I deduct my fitness subscription?

It generally concerns private living costs. Being a coach does not automatically make it fully deductible. Assess specific business use and private shares.

How long should I keep receipts?

Generally ten years from the end of the financial year for business books and accounting records. Retention and tax limitation are different rules. Check special periods and pending proceedings.

Can I pay my spouse for helping?

Payment for genuine, commercially justified work is possible. Document tasks, work performed and reasonable pay; a written agreement is recommended as evidence. An employment contract can generally arise orally or by conduct under Art. 320 CO, subject to special form and written-information requirements. Establish whether this is employment or an independent service, then account for salary or fees and social contributions according to the actual status and applicable exceptions. Do not treat undocumented private transfers as payroll. See SECO on concluding contracts.