Help me understand the 20% of the net income rule as a self employed person (pillar 3a)

Taxes:
Sole proprietorships are not taxable as companies, as they are not legal entities (corporations). Every sole trader pays tax on his/her private and business income as well as private and business assets as a whole and not separately.

3a:
Self-employed persons who are not affiliated to a pension fund may pay up to 20% of their earned income (net according to their tax return after deduction of AHV/IV/EO), but no more than the amount of the so-called large pillar 3a, into the tied 3rd pillar.

Summary:
As the owner of a sole proprietorship, you do not pay yourself a regular salary. Your salary consists of the taxable profit generated by your sole proprietorship. This taxable profit after social deductions is the number of which 20% or 35’280.- can be paid into 3a.

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