Self-employed individuals in Switzerland must pay income and wealth taxes. They are also entitled, exactly like enterprises, to fiscally deduct everything which is justified in a businesslike manner. This allows considerable margin of discretion. However, corporations/public limited companies (AGs) and limited liability companies (GmbHs) pay taxes on investment income and earnings.

In Switzerland, the Confederation, Cantons and Municipalities are allowed to levy direct taxes.

In this connection, one basically differentiates between:

•	Natural persons: These have to pay income and wealth taxes.
•	Legal entities: These must pay taxes on investment income and earnings.

Overview: Taxation of sole proprietorships, partnerships and corporations