According to the Income Tax Act (EStG), income from commercial operations includes both current and one-off income (commercial capital gains). While the current profits are regulated in § 15 EStG, you will find the divestments in §§ 16 and 17 EStG. In some places there are additional links in the Foreign Tax Act (AStG), about which we give you an overview!
In the second part of the video, we discuss the tax treatment of the various capital gains under the EStG.
“Income on sale is not equal to profit on sale” – you can already remember this motto at this point. In the EStG, the legislature distinguishes between several types of profit, but all of them belong to the income from commercial operations. These are:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.