The separation is a form of division and is regulated in § 1 (1) no. 2 UmwG. It refers to the ‘transfer’ of a branch of business from an existing partnership or corporation to another corporation. In terms of taxation, this is a case of § 20 UmwStG, which is comparable to the classical transfer of individual companies and co-entrepreneur shares in corporations. We give an overview of the spin-off and its consequences.
Principle 1: What is behind the spin-off?
The term “carve-off” refers to a form of division of so-called legal entities, usually partnerships or corporations. The starting point is a company from which two or more companies are to emerge in the further course. The separation as a form of division is regulated in § 123 paragraph 3 UmwG and knows the following requirements:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.