01What Is Depreciation?
When you purchase an asset as a self-employed person that you'll use for several years — such as a computer, vehicle or office furniture — you cannot deduct the full cost as an expense in one go. Instead, you spread the purchase price over the asset's useful life. This annual reduction in value is called depreciation.
Depreciation only applies to fixed assets with a multi-year useful life. Consumables like paper, printer cartridges or paper clips are immediate operating expenses and are fully deducted in the year of purchase.
The benefit: depreciation reduces your taxable profit each year. This lowers your tax burden over the entire lifespan of the asset — a key lever to save on taxes.
02Official Depreciation Rates (FTA)
The Swiss Federal Tax Administration (FTA) defines the maximum allowable depreciation rates in Circular A1995. These rates are upper limits — you may depreciate less, but not more.
| Asset Category | Degressive (Book Value) | Straight-Line (Purchase Price) |
|---|---|---|
| Computers / IT Equipment | 40% | 20% |
| Vehicles | 40% | 20% |
| Furniture / Fixtures | 25% | 12.5% |
| Machines / Apparatus | 30% | 15% |
| Tools | 45% | 22.5% |
03Degressive vs. Straight-Line
In Switzerland, you can choose between two depreciation methods. You're free to pick either one, but should stick with the same method within an asset category.
Degressive Depreciation
With the degressive method, the depreciation rate is applied to the current book value (remaining value). This means the write-off is highest in the first year and decreases over time. This method is the most common in Switzerland.
Example: MacBook for CHF 2'500, degressive at 40%:
| Year | Book Value (Start) | Depreciation 40% | Book Value (End) |
|---|---|---|---|
| 1 | CHF 2'500 | CHF 1'000 | CHF 1'500 |
| 2 | CHF 1'500 | CHF 600 | CHF 900 |
| 3 | CHF 900 | CHF 360 | CHF 540 |
| 4 | CHF 540 | CHF 216 | CHF 324 |
After 4 years, the MacBook still has a book value of CHF 324. With the degressive method, the book value never reaches exactly zero — the asset remains on the books with a small residual value until it is sold or written off.
Straight-Line Depreciation
With the straight-line method, the same amount is depreciated each year, calculated on the original purchase price.
Example: The same MacBook for CHF 2'500, straight-line at 20%: CHF 2'500 × 20% = CHF 500 per year, evenly over 5 years. After 5 years, the book value is CHF 0.
04Immediate Write-Off
Smaller purchases can sometimes be written off immediately — meaning the full amount is deducted as an expense in the year of purchase. The threshold varies by canton and typically ranges from CHF 100 to CHF 1'000.
In practice, many tax authorities accept an immediate write-off for items under approximately CHF 1'000. This applies to things like an inexpensive keyboard, a monitor or a headset. The administrative effort of multi-year depreciation would be disproportionate for such small amounts.
05What Cannot Be Depreciated?
Not every expense qualifies as depreciation. The following costs are ongoing operating expenses that you deduct directly in the year they occur — they are not spread over multiple years:
- Rent: Office rent or home office share are ongoing costs, not depreciable assets
- Insurance premiums: Professional liability, daily sickness benefit etc. are annual operating expenses
- Consumables: Paper, ink, printer cartridges, office supplies — immediate expense
- Subscriptions: Software subscriptions, cloud services, mobile plans — monthly or annual costs, not capital investments
The distinction is simple: only fixed assets that you purchase once and use over multiple years are depreciated. Everything you pay for on an ongoing basis or consume is a regular operating expense.