A division of operations, if unprepared, regularly leads to considerable tax disadvantages. However, it can also be used as a targeted instrument for business or asset succession and in the context of restructuring. However, it should be noted that a business split regularly excludes the extended reduction according to § 9 no. 1 sentence 2 GewStG. By law, it results in an original commercial activity of the holding company.
1. How do business splits and extended cuts fit together?
An operating split exists if two conditions are met together:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.