Partnership companies (PartG) in tax law

With the entry into force of the PartGG on July 1, 1995, the PartG was introduced as a company for the liberal professions, as the way to the legal forms of the OHG or the KG has been blocked for lack of commercial activity.
The PartG is also referred to as the “freelance sister” of the OHG due to the extensive correspondence under company law (e.g. joint and several liability of all partners). In contrast to the GbR, like the OHG, it is “quasi-legally capable”, ie capable of naming, land register and party. The EEIG is recommended for international freelance work. Insofar as all partners work independently and in a managerial manner based on their own specialist knowledge, they generally generate income from independent work i. S. d. Section 18 of the Income Tax Act.

In addition to the profit made, this also includes all remuneration for giving loans, for work or for the transfer of assets. As with all partnerships, the company is not subject to income tax, but its shareholders as natural persons are addressees of the income tax. However, if the PartG is also commercially active in addition to the liberal profession, all income is reclassified to income from commercial operations based on the dissipation theory (zebra society).

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