Sole proprietorship: Profits are always private – but not always at the place of residence

Attribution and place of taxation must be clearly separated

Sole proprietorships do not have their own tax status: the entrepreneur always pays tax on profits in their personal tax return. However, this personal attribution does not say anything about the place of taxation.

If the center of operations is located in another canton, the income can be allocated between cantons. If this substance is missing, taxation remains entirely at the place of residence.

The latest Federal Supreme Court rulings confirm this system and tighten the requirements for business headquarters outside the canton.

#Sole proprietorship #Self-employed #Tax allocation #Tax system #Tax practice

https://x.com/zugtrust/status/2018714904622936446

(c) Ludwig Limbeck AG, 2026, Autor: Rolf Limbeck