Insights
TAX & BUSINESS
Retention of Special Business Assets
Retaining special business assets when disposing of a co‑owner’s share can lead to the re‑taxation of profit exemptions.
The Administrative Court (Verwaltungsgerichtshof, VwGH) clarified that the retention of special business assets in the course of the disposal of the entire co‑owner’s share constitutes a taxable withdrawal of these securities into private assets. Securities that form part of the special business assets and are retained by the shareholder at the sale of the shares must be removed from the business assets. With the retention or removal of the special business assets, the purpose of the investment‑related profit exemption, which is to strengthen the operating capital, also ceases.
Securities that were used to cover investment‑related profit exemptions and leave the business assets before the expiry of the four‑year holding period therefore lead to a profit‑increasing inclusion of the affected profit exemptions.
The disposal of co‑owner or corporate shares can have numerous tax implications, so timely and comprehensive tax and legal advice is essential.
Securities that were used to cover investment‑related profit exemptions and leave the business assets before the expiry of the four‑year holding period therefore lead to a profit‑increasing inclusion of the affected profit exemptions.
The disposal of co‑owner or corporate shares can have numerous tax implications, so timely and comprehensive tax and legal advice is essential.