Deducting Expenses as Self-Employed: What's Allowed?

01Expense Policy vs. Business Expenses

Many self-employed people wonder whether they need a formal expense policy (Spesenreglement) — similar to what they may know from employment. The short answer: No. An expense policy is a formal document that governs which expenses an employer reimburses tax-free to employees. It only applies to corporations (AG) and LLCs (GmbH) with employees and must be approved by the cantonal tax office.

As a sole proprietor (Einzelfirma), you don't have employee expenses — you are both the business owner and the workforce. Your business-related costs are deducted directly as business expenses in your accounting and declared in your sole proprietorship tax return. This means: every business-related expense directly reduces your taxable profit.

Common misconception"I need an expense policy for my sole proprietorship" — this is incorrect. Expense policies only apply to legal entities (AG/GmbH) with employees. As a self-employed person, you simply book business costs as expenses.

02What's Deductible?

In principle, you can deduct all expenses that are necessary for your business and directly related to your professional activity. Here are the most important categories:

Office Supplies & Software

Printer cartridges, paper, pens, folders — but also digital tools like Adobe Creative Cloud, Microsoft 365, accounting software, or project management tools. Everything you need for your daily work.

Phone & Internet

You can deduct the business portion of your mobile phone plan and internet connection. For mixed use (private and business), a split is required — e.g., 50% of your mobile plan as a business expense.

Professional Development

Courses, workshops, conferences, online training, and specialist literature — as long as they are work-related. A language course for a language you need professionally is deductible. A hobby course is not.

Work Clothing

Be careful here: only genuine work clothing is deductible — such as protective clothing, lab coats, safety shoes, or uniforms. Regular clothing (including business suits or smart shoes) is not deductible, even if you only wear it for work.

Meals on Business Trips

When you're traveling for a client visit or a trade fair, you can deduct meal costs during the business trip — see our separate article on mileage and travel expenses for details. However, lunch at your regular workplace or meals during your daily commute are not deductible.

Specialist Literature & Association Fees

Professional books, industry magazines, journal subscriptions, and membership fees for professional associations are deductible as business expenses.

Home Office Portion

If you work from home, you can claim a proportional share of rent, electricity, and heating as business expenses. Find all the details in our article on deducting home office costs. The calculation is based on the floor area of your workspace relative to the total living space.

03What's NOT Deductible?

Just as important as knowing what's deductible is understanding what doesn't qualify as a business expense:

Regular everyday clothing — including business suits, dress shirts, or smart shoes. Only protective clothing and work clothing in the strict sense count
Meals at your workplace / commuter meals — lunch at your regular workplace or meals during your commute are private expenses
Private portions of mixed-use expenses — if you use your phone 50% privately, that portion is not deductible
Fines and penalties — even if incurred during a business trip, they are never deductible
Private insurance — basic health insurance (Grundversicherung) is a private expense, not a business cost

Be careful with the distinctionThe tax office scrutinises expenses that could be both privately and professionally motivated. When in doubt, book conservatively and clearly separate the private portion.

04Principles for Deductions

For an expense to be recognised as a business cost, four principles must be met:

Business necessity

The expense must be directly related to your business activity. It must be necessary or at least useful for generating your income.

Proportionality

The expense must not be excessively luxurious. A standard laptop is deductible; a gold-plated special edition without business justification is not.

Documented

You need proof for every expense — a receipt, invoice, or payment confirmation. These must be kept for at least 10 years according to the Swiss Code of Obligations (OR Art. 958f).

Business portion clearly separable

For mixed-use expenses (e.g., phone, car, apartment), the business portion must be split in a plausible and traceable way.

05Tip: Separating Private and Business Portions

The cleanest approach is a clear separation of business and private. In practice, this means:

Separate business account: All business income and expenses go through a dedicated account. This gives you a clear distinction from the start
Business phone plan: If possible, get a separate plan for business calls. If not: document the business portion (e.g., 50%)
Calculate home office space: Measure your workspace and calculate its share of the total living space. Example: 12 m² office in an 80 m² apartment = 15% of rent, electricity, and heating
Document the split: Keep a written record of how you divide mixed-use expenses. This documentation is your proof during a tax audit

Tax audits look closelyThe tax office can request receipts and documentation for your business expenses at any time. Those who separate cleanly and document everything have nothing to worry about. Those who can't prove the distinction risk surcharges and back taxes.

Record business expenses in einzlyWith einzly, you can record business expenses in seconds — including receipt uploads. So you have everything ready for your tax return. Prefer to track your expenses in Excel first? Download our free expense report template.

06Frequently Asked Questions

No, expense policies (Spesenreglement) only apply to corporations (AG) and LLCs (GmbH) with employees. As a sole proprietor, you deduct costs directly as business expenses.

Only genuine work clothing (protective clothing, lab coats). Regular business clothing is not deductible.

Plausibly and traceably. Common splits: 50/50 for phones, proportional by floor area for home office. Document the split.

At least 10 years (statutory retention obligation under the Swiss Code of Obligations, Art. 958f).