Even without using the allowance or the tariff benefit of § 34(3) EStG in the sale of a business or in its abandonment, the tax burden can be reduced to the profit of the business sale. However, this requires particularly forward-looking planning. How you plan ahead we explain in this article.
1. Basic operating profit regime
1.1. Basically favouring the operating profit
If you want to divest or abandon your business, then taxes must be paid on the profit and the capital gain must be determined in accordance with § 16 (2) EStG. The sale costs and the value of the operating assets (book value) must therefore be deducted from the purchase price. The profit thus determined is in principle subject to regular taxation.
However, the tax burden can be reduced. Basically, there are for such cases
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.