In principle, the tax bases according to § 157 paragraph 2 AO are determined as part of a tax assessment. By contrast, there are situations in which the tax bases are determined separately, i.e. in a separate decision. This case is governed by § 179 (1) AO. Therefore, tax bases can only be determined separately if this is stipulated in a tax law. A tax ruling is a basic ruling for the tax ruling based on it. We explain the conditions under which such a separate finding occurs, the consequences thereof and how you can explain the separate finding.

The separate determination leads to the tax bases being determined in a separate determination decision. The assessment decision is then the basic decision within the meaning of § 171 paragraph 10 AO for the tax assessment, which constitutes the subsequent decision. Therefore, the tax assessment can be corrected in accordance with § 175 (1) no. 1 AO. Therefore, the tax bases for different tax administration acts need only be determined once. Consequently, the purpose of the separate statement is to simplify and standardise tax bases.

As a rule, the separate statement is based on § 180 AO. This standard specifies the conditions for separate determination. However, this standard is not exhaustive. Rather, there are further tax laws that declare the separate determination necessary. Practically significant is the separate loss determination according to § 10d paragraph 4 EStG.

1.2.1. Separate determination for unit values

According to § 180 paragraph 1 no. 1 AO, unit values are determined separately. Unit values are values which are uniformly used as the basis for several taxes, the so-called unit value taxes. Thus, the value of the assets is determined in a uniform procedure for several types of tax. This makes the administrative procedure easier. According to § 182 paragraph 2 AO, the unit value assessments generally also have an effect vis-à-vis the subsequent legal successor.

1.2.2. partnership as a case of application of a separate determination

Furthermore, pursuant to Section 180 (1) Nunmer 2 AO, income subject to income tax or corporate tax is determined separately if several persons to whom this income is attributable participate in the income or in other tax bases related to it. Therefore, the income must come from a common source of income.

The main application case is the shareholders of a company. Nevertheless, it is necessary that the income can be allocated to the shareholders. However, the income of a corporation is attributable to the corporation and not to the shareholders. Only in the case of a partnership are the income directly attributed to the shareholders. Therefore, § 180 (1) no. 2 letter a AO applies only to shareholders of a partnership. It should be noted that the shareholders of a partnership can also be a corporation, for example in the case of a GmbH & Co. KG. Then the income of the corporation can be included. Therefore, in this case too, the income must be determined separately. Thus, the main application of § 180 (1) no. 2 AO is co-entrepreneurship according to § 15 (1) no. 2 EStG.

In this case, it must also be determined uniformly. This is intended to avoid that different legal consequences are linked to the same situation in relation to several participants and serves the administrative economy.

By means of a separate determination, it can be determined whether there are tax bases according to the reason. This includes whether non-taxable, tax-free or taxable income is available and to which types of income these incomes are allocated. It can also be determined separately to whom the income is attributed. Therefore, for co-entrepreneurs, special operating expenses and special operating income are also included. Furthermore, it can be determined whether there are reduced incomes within the meaning of § 34 EStG. Income can also be determined separately in terms of amount. This includes the amount and share of the participants in the total income.

Under certain conditions, the tax bases are determined uniformly and at the same time separately. What sounds strange at first has its reason. Tax bases attributable to several persons shall be established in a uniform and separate manner. Then according to § 179 paragraph 2 AO a uniform and separate determination is possible. The purpose of this is that the tax bases vis-à-vis several taxpayers can be determined congruently. Consequently, this serves to simplify tax determination.

In accordance with § 181 (1), the general procedural provisions apply to the separate determination, unless otherwise provided. However, the obligation to submit a statement of assessment arises from § 181 (2) AO. In the case of § 180 (1) no. 2 letter a AO, each party to the determination must declare if a share of the taxable income is attributable to him.

If persons request a separate determination, but the tax office assumes that the conditions for the separate determination are not met, the coveted determination must be rejected in a negative determination decision.