Differentiation between self-employment and employment from a tax and pension law perspective

Case 1: Laura Meier

1.1 Facts of the case

Laura Meier, 34 years old, lives in Zurich. She has been working as a marketing manager for Nordlicht GmbH, a medium-sized German company, since 2024. She works exclusively remotely from Switzerland. Nordlicht GmbH has no permanent establishment in Switzerland. Laura receives her salary directly from Germany, without deductions for AHV, IV, EO or BVG. There is also no insurance in Germany.

1. 2 questions

• How do you qualify for this job? 
• What is the social security treatment in this specific case? 
• What is the tax treatment? 

1.3 Adjustment of facts I 

In contrast to the basic facts, it changes that Laura has been working as a marketing manager for BrightWave Ltd, a company based in London (UK), since 2024 and therefore receives a monthly salary directly from London, again without deductions for AHV, IV, EO or BVG. 

1.4 Question

What is changing in the assessment? 

1.5 Adjustment of facts II

In contrast to the basic facts of the case, Laura receives additional compensation of CHF 2,000, which is explicitly intended to cover the costs of a workplace in her apartment.

1.6 Questions

• How is this payment to be assessed for Laura from a tax perspective? 
• What has changed with regard to the assessment of the permanent establishment issue?

1.7 Adjustment of facts III

Laura Meier, 34 years old and based in Zurich, has been providing marketing services for companies throughout the DACH region since 2024. One of her main clients is Nordlicht GmbH, based in Hamburg. The collaboration with this company is project-based, without fixed working hours and without being bound by instructions. Laura carries out her work completely remotely from her home in Switzerland. She invoices for her services and receives a fee of 90 euros per billable working hour. She bears all expenses, the necessary infrastructure and her social security contributions independently. There are no contractual employment obligations; in particular, there is no entitlement to continued payment of wages or vacation. Laura appears to the outside world under the name "Meier Marketing Solutions", but is in fact fully occupied with projects for Nordlicht GmbH.

1.8 Question

How do you qualify Laura's status based on this adjustment of facts? 

1.9 Adjustment of facts IV

Laura Meier, 34 years old and based in Zurich, has been offering marketing services for companies throughout the DACH region under the name "Meier Marketing Solutions" since 2024. One of her most important clients is Nordlicht GmbH, based in Hamburg. Since mid-2025, it has expanded its client portfolio and also supports Alpenblick AG, based in Zug, and Visiona GmbH in Vienna. The collaboration with her clients is project-based, without fixed working hours and without being bound by instructions. Laura carries out her work completely remotely from her home in Switzerland. She invoices between 90 and 110 euros per hour for her services. She bears all expenses and the necessary infrastructure independently. There are no contractual employment obligations; in particular, she is not entitled to continued pay or vacation. Laura appears to the outside world under her company name, operates her own website and uses the infrastructure she has provided herself to provide her services.

1.10 Question

How do you qualify Laura's status in this case? 

Case 2: Prof. Dr. med. Albert Steiner

2.1 The facts of the case

Albert Steiner works for the Aarau Cantonal Hospital, where he is Head of Cardiology. 

There is an employment contract under public law for an 80% workload. The annual salary is CHF 280,000 per year and social security contributions are paid by the employer.

In addition, he holds a consultation for private patients at the Hirslanden Clinic one day a week. The clinic takes on all the administrative work (appointment coordination, billing, etc.) for 15% of the fee. In addition, he pays a flat-rate room rental fee of CHF 800 per day, resulting in a net income of CHF 100,000.  

For BVG purposes, he has an insured salary of CHF 354,275 (280,000 + 100,0000 less 25,725 coordination deduction 2024). 

Albert Steiner bought into the 2nd pillar for CHF 150,000 in 2024 and also paid CHF 7,056 into pillar 3a in 2024. 

Albert Steiner lives with his wife and two minor children in Baden AG. 

2.2 Questions

• How do you rate the employment relationship with the KSA
• How do you rate the employment relationship with the Hirslanden Klinik
• Can the purchase into the 2nd pillar and the payment into pillar 3a be claimed for tax purposes? 

2.3 Supplementary facts I

Same basic situation, again Albert Steiner bought into the 2nd pillar for CHF 150,000 in 2024 and also paid CHF 7,056 into pillar 3a in 2024. 

The Steiner family moved from Freiburg DE in 2023. After moving to Switzerland, Albert Steiner made use of the option of voluntary insurance with the pension fund of the Berlin Medical Association and paid the minimum annual contribution of the equivalent of CHF 6,000. 

2.4 Question

Do the contributions to the Medical Association and the fact that the family moved from abroad in 2023 affect the determination of Albert Steiner's taxable income?

2.5 Supplementary facts II

Albert Steiner has resigned from his positions at KSA and Hirslanden with effect from December 31, 2023 and has set up his own business as a consultant for hospitals. 

The termination capital in the pension fund amounted to CHF 2,500,000 as at December 31, 2023. Albert Steiner had his pension assets of CHF 2,500,000 paid out from the 2nd pillar.

The sole proprietorship is not entered in the commercial register and there is no website. 

Financial statements for the sole proprietorship were submitted in connection with the 2024 tax return. This included various expenses for office rent at home, internet costs, communication costs, vehicle costs, training costs as a golf instructor and catering costs for visits to the golf course. 

The expenses are offset by consulting income of CHF 2,500 and a fee of CHF 2,000 for a presentation. 

The result shows a loss of CHF 25,000. There is no balance sheet.

2.6 Question

Does Albert Steiner qualify as self-employed?

2.7 Adjustment of facts to supplement II

In connection with the financial statements of the sole proprietorship submitted with the 2024 tax return, expenses were recorded for the rental of infrastructure in hospitals, cost contributions to the personnel costs of the hospitals in Aarau, Baden and Solothurn, office rent at home, internet costs, communication costs, vehicle costs, training costs as a golf instructor, catering costs on the occasion of golf course visits as well as depreciation for the newly acquired vehicle and IT resources. The expenses are offset by income of CHF 120,000. This relates to various income for services provided to hospitals and health insurance companies. 

The result shows a loss of CHF 55,000.

2.8 Question

Does Albert Steiner qualify as self-employed?

2.9 Restatement of facts II to supplement II

Albert Steiner is delighted with the good start to his self-employment. After just two months, he can hardly keep up with all the work. What's more, with the complex consulting mandates, he is also taking on more and more liability risks that are not fully covered by his liability insurance. For this reason, he decided to give up his self-employment after just three months and convert his sole proprietorship into a public limited company on October 1, 2024. After the conversion, he receives a monthly gross salary of CHF 20,000 from his company.

2.10 Question

Is it sufficient if the self-employed activity was only maintained for 3 months?

2.11 Restatement of facts III to supplement II

Albert Steiner founds Spitalberatung Steiner AG in January 2024. On July 1, 2024, he resigns from his position as Chief Physician for the KSA and becomes self-employed as a consultant. As at June 30, 2024, the retirement capital in the pension fund amounted to CHF 2,500,000. Albert Steiner had his pension assets of CHF 2,500,000 paid out from the 2nd pillar. 

Albert Steiner then provides consulting services for various Swiss hospitals, which are invoiced and collected by Spitalberatung Steiner AG. 

According to the financial statements as at 31.12.2024, this results in a profit of CHF 110,000. 

The details of the income statement show that Albert Steiner invoices exclusively to Spitalberatung Steiner AG and that the service income of CHF 180,000 is offset by expenses of CHF 70,000. 

Spitalberatung Steiner AG again reported a net profit of CHF 150,000. 

2.12 Questions

• How is Albert Steiner's activity to be qualified?
• What are the tax and social security consequences?

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Case 3: Employee shareholdings  

3.1 Facts of the case

An exit takes place in 2025: Top Solution AG is acquired by a private equity fund. A tax ruling was obtained at the company's headquarters in Zug, which recognizes the formula value as suitable and confirms that the excess profit is tax-free after a holding period of five years.

The cantons of Aargau and Vaud, on the other hand, reject the formula value as unsuitable and do not recognize the tax exemption of the excess profit.

3.2 Question

How does the compensation office of the Canton of Zug assess this case with regard to social insurance?

3.3 Addition to the facts

Hans Grossfuss was able to acquire a stake in Top Solution AG 6 years ago. As he is notoriously short of money despite his very good income, he was unable to pay for the acquisition of the shares in Top Solution AG at the very advantageous formula value. 

Top Solution AG therefore granted him an interest-free loan. In the meantime, he has only been able to repay 40% of this loan. 

3.4 Question

Will anything change for him? What else needs to be considered?