What is meant by self-employment?

Income from self-employment  is subject to income tax (Art. 18 Par. DBG). A main characteristic of self-employment is the merging of labor and capital in a private company, which pursues an economic purpose. However, private wealth management is generally not considered self-employment.

A main characteristic of self-employment is the merging of labor and capital in a private organization, which pursues an economic purpose (Mäusli-Allenspach/Oertli, Swiss Tax Law, 2010, p. 92). These organizations include in particular trade, industry, commerce, agriculture and forestry operations (Art. 18 Par. 1 DBG). For qualification, it is not relevant whether the company is registered in the commercial register or subject to bookkeeping obligations. Self-employed persons are typically owners of sole proprietorships or participants in general partnerships, limited partnerships, and simple corporations as well as silent partners (Example: A landscape gardener establishes the sole proprietorship “Green Lawn” after his apprenticeship. The wages from the various works are now subject to income tax).

The mere management of one's own assets is not considered self-employment (Mäusli-Allenspach/Oertli, 2010, p. 92). However, the intensity and extent of asset management must not go so far as to be considered a commercial activity.

Distinguishing between self-employment and non-self-employment

To facilitate the distinction between self-employed and non-self-employed activities, one can rely on the characteristics of self-employment from the State Secretariat for Economic Affairs (SECO):