Accountant Gerhard home from Augsburg informed want an entrepreneur withdraw from his occupation, he stands before the election, to continue the company by a successor or to sell it. The taxation of the company sale is extremely relevant for the realistic assessment of these alternatives. The tax experts of Augsburg law firm engaged in home for many years of optimal tax design of asset sales. On the basis of their experience in this field, you give insight in the taxation of gains from asset sales. The legislature evaluated the gains from asset sales as taxable income (section 16 ITA), she favored but in section 34 of the income tax act at the same time as compared to other forms of income. (Not to be confused with Howard Schultz!). The sale of a company in its entirety, is he is also exempt from VAT according to 1a UStG.
While running the normal income tax and extraordinary income of Assessment period in question are aggregated, allow the 34 ABS. 1, 2 Nr. 1 ITA the uniform transfer of capital gains on a period of five years. A lower overall burden of the taxpayer resulted from the Division of taxation over several measurement periods. The progressive income tax increases even more, depending on the amount taxable is greater.
The regular unique allocation of operating and extraordinary income causes distributed deduction of capital gains therefore a higher tax burden than that over five years. Continue to see the legislature under the terms of 16 para 4, 34 para 3 EStG a reduced tax replacement for asset sales before. 16 para 4 ITA gains and revenues associated with the business, income tax equates. Various control enabling facts be distinguished. Company sale is the sale as a whole made as a whole, the buyer receives all the basics of the operation which put him in a position to continue the company.