Self-employed persons pay tax on income and assets. Like companies, they can deduct anything justified as being for business use.
This leaves a wide margin for discretion. Corporations (sociétés anonymes) and limited liability companies (SARLs) pay a tax on their capital and profits.
In Switzerland, the Confederation, cantons and communes have the right to levy direct taxes.
Fiscally, a difference is made between:
- natural persons or individuals, who are required to pay income tax and tax on wealth, and
- legal entities, who are required to pay tax on profits and capital.
Summary: Taxation of sole proprietorships, partnerships and share capital companies