Type of income | Before division of operations | After the split-up

Rental and lease (rental of a property to the Betriebs-GmbH, even a study is sufficient) | Rental and lease according to § 21 EStG Income: Surplus of income over advertising costs | Commercial income according to § 21 paragraph 3 in conjunction with § 15 paragraph 1 number 1 and paragraph 2 EStG Income: Profit, determined as a rule by income surplus invoice

Capital assets (participation in the Betriebs-GmbH) | Capital assets according to § 20 EStG | Commercial income according to § 20 paragraph 8 in conjunction with § 15 paragraph 1 no. 1 and paragraph 2 EStG Application of the partial income procedure (§ 3 no. 40 EStG), 40% of the emoluments are tax-free

Tax burden at the private level (§ 20 EStG) | Tax burden in the owned company (§ 15 EStG)

Application of the capital gains tax rate of 25 % (§ 32d paragraph 1 EStG) Tax burden thus EUR 25,000 | tax exemption of 40 % of income (§ 3 no. 40 letter a EStG) To be taxed with it: EUR 60,000 x tax rate 45% tax burden thus EUR 27,000

Private level (§ 21 EStG) | Operational level (§ 15 EStG)

Revenue: EUR 40,000 Advertising Costs: EUR 15,000 Income: EUR 25,000 x Tax Rate 45% Tax Charge So EUR 11,250 | Operating Revenue: EUR 40,000 Operating Expenditure: EUR 15,000 (Isolated) Income: EUR 25,000 x Tax Rate 45% Tax Charge So EUR 11,250

Economic asset | evaluation

Rented property (main operating base) | General value less book value gives the taxable profit

Example: Sale price on the open market would be EUR 1,500,000, in the balance sheet of the owner company the property is recorded at EUR 500,000. To be taxed is EUR 1.000.000

GmbH participation | valuation usually by simplified income value method according to §§ 199 to 203 BewG; Formula: Annual profit x 13.75 – 30% flat-rate deduction for taxes

Example: GmbH with annual profit EUR 200,000, 49% of the shares are withdrawn into private assets. EUR 200,000 x 13.75 – 30% x 49 % = EUR 943.250 Taxable EUR 943.250

The so-called operating split represents a considerable risk for GmbH shareholders. It often develops unnoticed, but quickly leads to a tax burden in the six- to seven-digit range when it is resolved. The reason for this is the hidden reserves, which “lurk” in numerous economic goods and should never be uncovered unnoticed. However, if the proverbial child has already fallen into the well, there are various ways to end a business split. The individual strategies also work if an operational split has been planned.

1st principle: When is there a business split?

An operating split requires two previously separate assets, such as the private assets of a GmbH shareholder and the operating assets of the GmbH itself. These asset areas are now “connected” to a certain extent by factual and personnel links. As a result, the legislature assumes a uniform entrepreneurial sphere, including in particular the previous private assets of the shareholder.

A brief look at the most important elements of the division of operations, the factual and the personnel links: