Because freelancers are not Solar Staff's employees and we don't pay taxes on their payouts, they must declare any income received via Solar Staff by themselves.
To carry on tax accounting in Switzerland for your Solar Staff income, you need to:
Be a tax resident
Determine the applicable tax obligations
Tax residence
Switzerland taxes its residents on their worldwide income, while non-residents are taxed on their income from Swiss sources only.
Individuals are considered tax residents of Switzerland if they meet at least one of the following criteria:
They have a permanent residence in Switzerland
The center of their vital interests is in Switzerland, which includes having a spouse and/or children permanently residing in the country
They stay in Switzerland with the intention to engage in gainful activities for a period of 30 days
They stay in Switzerland with no intention to engage in gainful activities for a period of 90 days
Switzerland has double taxation agreements with a number of countries (full list), the provisions of which may override the applicable tax residence rules and other provisions of national legislation.
Taxpayer ID number
In Switzerland, the tax ID number for individuals is their social security number (AHV), while for legal entities and sole proprietors, it is the identification number (UID) (learn more).
Read on to learn more about each of them.
The social security number (or OASI (Old Age and Survivors' Insurance) number), (AHV-Nummer in German, Numéro AVS in French and Italian), is used to identify individuals and sole proprietors within the social security and mandatory pension insurance system. It consists of 13 digits formatted as 756.9999.9999.99, where the first three digits (756) represent the country code for Switzerland. The AHV number is assigned permanently and remains unchanged even if personal registration details are updated (for example, in case of a name change due to marriage or divorce).
The identification number (Unternehmens-Identifikationsnummer, UID) is a unique identifier assigned to every legal entity or registered sole proprietor in Switzerland. It is used for taxation, registration in commercial registers, customs procedures, and other administrative purposes. The UID number is made up of 13 characters, starting with the country code “CHE” followed by nine digits, in the format CHE999999999 or CHE-999.999.999. This number is also permanent. The UID number is assigned by the Federal Statistical Office (Bundesamt für Statistik, BFS) once the individual registers with the relevant administrative authority (learn more). For persons registered in the Commercial Register, the UID number includes the suffix “HR” (in German) or “RC” (in French and Italian). You can find out your UID number by contacting the BFS in person, via email at [email protected], or by phone at 0800 20 20 10.
The VAT identification number in Switzerland (Mehrwertsteuernummer, MWST-Nummer / Numéro TVA / Numero di identificazione IVA) is a unique identifier for businesses and entrepreneurs registered for value-added tax (VAT) purposes. The MWST-Nummer is based on the UID number, with the suffix “VAT” added at the end: “MWST” in German (Mehrwertsteuer), “TVA” in French (Taxe sur la valeur ajoutée), or “IVA” in Italian (Imposta sul valore aggiunto). This number is automatically assigned by the Federal Tax Administration (Eidgenössische Steuerverwaltung, ESTV) when a person registers as a VAT payer and is used for taxing services provided within Switzerland.
The VAT identification number in the European Union (Umsatzsteuer-Identifikationsnummer, USt-Nummer) is a unique identifier for businesses and entrepreneurs registered for VAT purposes who provide services within the European Union (EU). Taxpayers registered in Switzerland must obtain this number from the relevant EU country.
Taxes and contributions payable by freelancers
Tax liabilities in Switzerland depend on the chosen tax status and/or eligibility for certain criteria. In Switzerland, freelancers can only earn income through Solar Staff as a sole proprietor (Einzelunternehmen / entreprise individuelle / ditta individuale).
IMPORTANT! Solar Staff does not have the option to choose a tax status for freelancers based in Switzerland, but you can fill in your taxpayer ID in your account.
Read on for more details.
Sole proprietorship
A sole proprietor (Einzelunternehmen / entreprise individuelle / ditta individuale) is an individual who carries out entrepreneurial activities and is fully liable for any obligations arising from these activities with their personal assets.
To register as a sole proprietor, one must:
Be at least 18 years old
Hold Swiss citizenship or a residence permit with work authorization (learn more on registration for foreign nationals)
The registration as a sole proprietor involves several steps:
Registration in the Commercial Register (Handelsregister), which is a public database managed by the cantons and containing key information about companies engaged in commercial activities. Sole proprietors must register if their annual turnover exceeds CHF 100,000 (Article 931 of the Swiss Civil Code, Part Five: The Code of Obligations (Obligationenrecht, OR)). They may also choose to register voluntarily.
There are two ways for sole proprietors to register in the Commercial Register:
Directly with the federal government using the EasyGov online service
In person at the cantonal Commercial Register Office
The following documents are required for registration:
A completed application form (example for the canton of Zurich) in one of the canton’s official languages (German, French, or Italian). Registration will be processed in the language of the application. If submitted on paper, the application must be signed by hand; if submitted electronically, it must use a qualified electronic signature
An ID document
Proof of qualifications for regulated professions (for more details, see the next steps for sole proprietorship registration)
Proof of address in Switzerland (for example, a lease agreement for an office)
Proof of the registration fee payment (for sole proprietors, the fee is CHF 120 (learn more)
After registration, the sole proprietor is assigned a UID number.
Sole proprietors listed in the Commercial Register must use a name that includes their last name, either with or without their first name. They may also include descriptors that indicate the nature of their business or services, but these cannot imply the formation of a company or partnership (Articles 945 and 946 of OR).
For sole proprietors not listed in the Commercial Register, their details will be published in the UID register, and they will automatically be assigned a UID number during the next steps of registration. They are required to use both their first and last names in their official name. Any names other than their first and last names will be listed in the UID register only under the “Additional Name” field.
IMPORTANT! You can sign up for Solar Staff and formalize paperwork using your full name as an individual only. Entering a different name for the sole proprietorship is not permitted.
Registration with the social security authorities. In Switzerland, sole proprietors must register as self-employed in the social security system if their annual income exceeds CHF 2,300. To register, they need to apply to the compensation fund in the canton where they operate (those in the construction and transportation sectors apply to the Swiss National Accident Insurance Fund (Suva). Upon registration, the sole proprietor will be assigned a UID number if they haven't already been assigned one previously.
Registration with the Federal Tax Administration (Eidgenössische Steuerverwaltung, ESTV) is only required if there is an obligation to pay VAT. Sole proprietors can complete the registration online via the ePortal government services portal, providing the following information (learn more):
Sole proprietor details as per the extract from the Commercial Register (if available) and the UID number
Social security number (AHV/IV)
Revenue forecast for the first year of operation
For any questions, sole proprietors can contact the tax authorities by phone or through the website contact form. A certificate confirming VAT registration (MWST-Unternehmensbescheinigung) can also be requested online social (learn more).
Registration in cantonal professional registers (such as the register of medical professionals, the register of lawyers and notaries in the canton of St. Gallen, etc.) is required, along with confirmation of qualifications. The Federal Department of Economic Affairs, Education and Research (Eidgenössisches Departement für Wirtschaft, Bildung und Forschung, WBF) and the State Secretariat for Education, Research and Innovation (Staatssekretariat für Bildung, Forschung und Innovation, SBFI) publish a list of regulated professions (reglementierte Berufe) that require professional qualifications, such as diplomas or degrees (learn more). These professions include medical workers, construction industry professionals, tour guides, lawyers, notaries, educators, teachers, and others.
Foreign specialists can seek recognition of their foreign diplomas by contacting the competent recognition authorities (learn more). Additionally, some activities in Switzerland are classified as liberal professions (freie Berufe) (see the list).
Mandatory accounting requirements apply only to sole proprietors whose revenue for the previous financial year amounted to CHF 500,000 or more (Articles 957 and 957a of OR). Sole proprietors with a turnover below CHF 500,000 can use simplified accounting, which only records income, expenses, and assets.
Learn more below.
Income tax (Einkommensteuer / impôt sur le revenu / imposta sul reddito) is charged at progressive rates based on income amount and place of residence (Article 36 of the Federal Direct Tax Act (Bundesgesetz über die direkte Bundessteuer, DBG)) (learn more).
Income tax includes the federal direct tax (direkten Bundessteuer, DBST / impôt fédéral direct / imposta federale diretta), as well as cantonal (Kantonalsteuer / impôt cantonal / imposte cantonali) and municipal (Gemeindesteuern/ impôt communal /imposte comunali) taxes.
The federal direct income tax is charged at the following rates:
Income of single taxpayers in 2024, CHF | Income of single taxpayers in 2025, CHF | Tax rate, % |
Up to 15,000 | Up to 15,200 | 0 |
15,000 – 32,800 | 15,200 – 33,200 | 0.77 |
32,800 – 42,900 | 33,200 – 43,500 | 0.88 |
42,900 – 57,200 | 43,500 – 58,000 | 2.64 |
57,200 – 75,200 | 58,000 – 76,100 | 2.97 |
75,200 – 81,000 | 76,100 – 82,000 | 5.94 |
81,000 – 107,400 | 82,000 – 108,800 | 6.60 |
107,400 – 139,600 | 108,800 – 141,500 | 8.80 |
139,600 – 182,600 | 141,500 – 184,900 | 11 |
182,600 – 783,300 | 184,900 – 793,400 | 13.20 |
783,300 and more | 783,400 and more | 11.50 |
Income of married couples (combined) in 2024, CHF | Income of married couples (combined) in 2025, CHF | Tax rate, % |
Up to 29,300 | Up to 29,700 | 0 |
29,300 – 52,700 | 29,700 – 53,400 | 1 |
52,700 – 60,500 | 53,400 – 61,300 | 2 |
60,500 – 78,100 | 61,300 – 79,100 | 3 |
78,100 – 93,600 | 79,100 – 94,900 | 4 |
93,600 – 107,200 | 94,900 – 108,600 | 5 |
107,200 – 119,000 | 108,600 – 120,500 | 6 |
119,000 – 128,800 | 120,500 – 130,500 | 7 |
128,800 – 136,600 | 130,500 – 138,300 | 8 |
136,600 – 142,300 | 138,300 – 144,200 | 9 |
142,300 – 146,300 | 144,200 – 148,200 | 10 |
146,300 – 148,300 | 148,200 – 150,300 | 11 |
148,300 – 150,300 | 150,300 – 152,300 | 12 |
150,300 – 928,700 | 152,300 – 940,900 | 13 |
928,700 and more | 940,900 and more | 11.5 |
The current cantonal income tax rates are available on the websites of cantonal tax administrations or the ESTV website. The municipal income tax rate is set at the commune (municipality) level as a percentage of the cantonal rate and is also available on the cantonal tax administrations’ websites (see example for the canton of Zurich).
Taxpayers can calculate their income tax at all levels using an online calculator.
Taxpayer’s business expenses, including insurance contributions, are deductible (Article 27 of DBG) (taxpayers can estimate their deductions using the calculator on the ESTV website). Additionally, the following expenses can be excluded from the chargeable income and the following tax deductions can be claimed (Article 33 of DBG):Expenses for professional training and continuing education, including retraining costs, up to CHF 12,900 in 2024 and CHF 13,000 in 2025
Membership fees and grants to political parties
Tax deductions based on marital and parental status
Business losses can be carried forward by the taxpayer for up to seven years following the tax period in which they occurred (Article 31 of DBG).
Tax returns must be filed annually using Form 2 (supporting materials) no later than March 31 of the year following the reporting year (some cantons may have different deadlines) or within 30 days of receiving the form from the tax authority in the canton where the taxpayer resided at the end of the relevant tax period (Article 124 of DBG). The deadline for submitting the tax return can be extended upon request. Married couples and registered partnerships must file a joint tax return and are taxed jointly (Article 9 of DBG, Article 3 of StHG, Federal Act on Registered Partnerships of Same-Sex Couples (PartG)).
Late submission or failure to file a tax return can result in penalties of up to CHF 1,000 at both the federal and cantonal levels. In special cases, such as repeat violations, penalties can increase to CHF 10,000 (Article 174 of DBG and Article 55 of the Tax Harmonization Act (Steuerharmonisierungsgesetz, StHG). Similar penalties also apply to other types of tax filings, including VAT returns.
Income tax payments must be made by the following deadlines:Federal direct tax: due before March 1 of the year following the reporting year (Article 1 of the Federal Department of Finance (FDF) Ordinance on Due Dates and Interest for Direct Federal Tax) (Verordnung des EFD über Fälligkeit und Verzinsung der direkten Bundessteuer). Advance tax payments can also be made throughout the year
Cantonal and municipal taxes: due within 30 days of receiving the invoice from the tax authority (see example for the canton of Bern):
During the reporting year, taxpayers receive invoices for advance tax payments (Ratenrechnungen) by May 20, August 20, and November 20, based on the previous year's tax return
Final settlement (Schlussabrechnung) is based on the current year's tax return
Cantons collect federal taxes along with cantonal and municipal taxes. Late payments of federal taxes, including income tax, VAT and other taxes, incur a late penalty (Verzugszinssatz) of 4.75% for 2024 and 4.5% for 2025. Taxpayers making advance payments ahead of schedule receive the remuneration (Vergütungszinssatz) at a rate of 1.25% for 2024 and 0.75% for 2025. In cases of tax evasion, penalties can reach up to one-third of the tax amount due (Article 175 of DBG and Article 56 of StHG). In more severe cases, the penalty may rise to three times the amount of tax due.
Value-added tax (VAT) (Mehrwertsteuer, MWST / Taxe sur la valeur ajoutée, TVA / Imposta sul valore aggiunto, IVA) applies to sole proprietors with an annual income exceeding CHF 100,000. There are two methods for calculating VAT:
Effective method (effektive Abrechnungsmethode): This commonly used approach calculates VAT based on the standard tax rate of 8.1% applied to sales less VAT on purchased goods and services
Net tax rate method (Saldosteuersatzmethode/ Méthode des taux de la dette fiscale nette / Metodo delle aliquote saldo): This simplified VAT calculation method is available for small and medium-sized enterprises that meet the following criteria (Article 37 of the Federal VAT Act (Mehrwertsteuergesetz, MWSTG)):
The taxable annual revenue (including VAT) does not exceed CHF 5,024,000; and
The VAT payable does not exceed CHF 10,300 per year
To apply the net tax rate method, sole proprietors must submit a written application to the ESTV by completing Form No. 1198_04 within the following timeframes:
Upon initial registration, within 60 days of being assigned the VAT number (Article 78 of the VAT Ordinance (Mehrwertsteuerverordnung, MWSTV)). If the application is not submitted within this timeframe, the effective method will automatically apply for at least three years, after which a request to switch to the net tax rate method can be made at the beginning of the next tax period
In other cases, within 60 days from the start of the tax period (Article 79 of MVSTV)
VAT returns (the form for the effective method and the form for the balance method for 2024) must be submitted within 60 days after the reporting period ends (Article 71 of MWSTG). The effective method requires quarterly submissions, while the net tax rate method returns are submitted semi-annually (Article 35 of MWSTG). Starting January 1, 2025, annual submissions are permitted with prior notification to the ESTV if the annual revenue does not exceed CHF 5,005,000 (learn more). Additionally, from January 1, 2025, VAT returns must be filed online through the ePortal service (learn more). In case of any discrepancies in the submitted tax returns, taxpayers can file a correction (learn more). They may also submit an annual reconciliation report (Jahresabstimmung) within 240 days after the end of the reporting year (learn more).
Tax payments are typically due on the day the tax return is submitted, which is within 60 days of the end of the reporting period. The interest on late payments is charged without notifying the taxpayer (Article 86 of MWSTG).
The social security system (Sozialversicherungen) requires sole proprietors to make contributions to the first level of the pension system (learn more), with contribution rates based on income amounts. Below are the mandatory social security types and contribution rates for 2024 and 2025 (learn more):
Old-age and survivor’s insurance (Alters- und Hinterlassenenversicherung, AHV) – 8.1%;
Disability insurance (Invalidenversicherung, IV) – 1.4%
Earnings loss insurance (Erwerbsersatzordnung, EO) – 0.5%
For annual incomes below CHF 58,800 in 2024 (CHF 60,500 in 2025), a reduced contribution scale applies, ranging from 9.321% to 5.371% (learn more). Sole proprietors can calculate their social security contributions using an online calculator.
Payment of contributions. Self-employed individuals belonging to professional associations must pay contributions to their association fund (learn more), while others must contribute to their canton's compensation fund (learn more). Payments are due quarterly within 10 days after the end of each quarter (learn more). Late payments incur a penalty of 5%.In addition to paying the above mandatory social security contributions, sole proprietors must also obtain health insurance (learn more) and contribute to the Family Compensation Fund (Familienausgleichskasse, FAK) (learn more).
The second and third levels of the pension program are not mandatory for the self-employed, with voluntary contributions subject to the following limitations:
Contributions towards second-level pension insurance are permitted if their income is at least CHF 22,050 per year
Contributions towards third-level pension insurance are limited to 20% of taxable income (but not more than CHF 35,280 per year)
Unemployment insurance (Arbeitslosenversicherung, ALV) does not apply to the self-employed.
Additional information
EasyGov is an online platform developed by the State Secretariat for Economic Affairs (SECO) for digital interaction between businesses and government authorities. To conduct business interactions entirely online, sole proprietors must obtain an electronic signature (elektronische Signatur, QES) (learn more).
For advice on starting a business, you can consult cantonal economic development departments.
KMU-Portal is a platform created by SECO for small and medium-sized enterprises, offering information and updates on key developments for business owners.
Income received through Solar Staff is declared using certificates and invoices, and in accordance with the offer agreement.
If you have any questions, get in touch via the chat in your Solar Staff account or email us at [email protected].