The most important points at a glance

• Even if you’re self-employed part-time, you must correctly report your income on your tax return.

• The SVA Zurich (Competence Center for Social Insurance in the Canton of Zurich) or, for members of start-up associations, the relevant association compensation fund will determine whether your activity qualifies as self-employment—this is not automatically the case.

• Depending on the scope of your activity, contributions to the Old Age and Survivors’ Insurance (AHV) may be required.

• Generally, VAT liability applies for annual turnover of 100,000 Swiss francs or more.

• A clear separation between private and business activities is crucial.

What does part-time self-employment mean?

As a part-time self-employed person, you are both employed and working on your own account. Your employment continues, and the part-time activity is added to it.

However, not every secondary activity is automatically considered self-employment. What matters is whether you carry out your work in your own name and on your own account, bear your own business risk, and are economically and organizationally independent.
Self-employment is particularly evident if you present yourself as independent to the outside world, offer and bill for your services yourself, can have multiple clients, make your own investments, and are not integrated into a client’s organization in a way that requires you to follow instructions.

The SVA Zurich or the relevant association compensation fund will use these criteria to determine whether your activity can be recognized as self-employment.

It is also important to distinguish between a hobby and a gainful activity: As soon as you generate regular income and aim to make a profit, it is generally considered a gainful activity, regardless of the scope.

What do you need to keep in mind?

Social Insurance

If you are already employed as an employee in your main occupation and pay at least the statutory minimum AHV contribution , you are only required to register a self-employed secondary activity with the compensation fund if the net profit generated from it exceeds CHF 2,500 per year.

If the annual net profit from the self-employed secondary activity is CHF 2,500 or less, no additional AHV contributions are generally levied. If the net profit exceeds this amount, contributions are due on the total profit from the self-employed secondary activity.

Taxes

You must report income from self-employed secondary employment on your tax return as self-employment income. You must list all income and deductible expenses. Accurate bookkeeping is a prerequisite for this.

Value-Added Tax

VAT liability applies starting at an annual turnover of 100,000 Swiss francs. You must then register with the Federal Tax Administration (FTA) within 30 days from the point at which the threshold is exceeded. Below this threshold, you are exempt from VAT but may register voluntarily.

Occupational Pension Plans and Insurance

Your pension fund (2nd pillar) only covers your employment. As a rule, there is no additional insurance coverage for income from self-employment. Check whether supplementary coverage makes sense for your side job, such as daily sickness benefit insurance or liability insurance.

Related Topics

Would you like to expand your side job or take the leap into full-time self-employment? 

Note:
The information on this page is for guidance only and is not exhaustive. Details should be clarified with experts or the relevant authorities as early as possible.

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