Operating income

In contrast to business expenses, there is no legal definition of business income in the Income Tax Act (EStG) . The concept of income in Section 8 (1) of the Income Tax Act applies exclusively to the types of surplus income in accordance with Section 2 (1) no. 4 - 7 of the Income Tax Act. In the case of profit income types according to Section 2 (1) No. 1 - 3 EStG (income from agriculture and forestry, income from commercial operations and income from self-employed work ), one speaks of operating income .

The case law of the Federal Fiscal Court interprets the concept of operating income on the basis of the concept of operating expenses and income from excess income ( Section 8 EStG). According to this, operating income is the addition of assets in the form of money or monetary value , which are caused by the operation.

Monetary income and monetary income

In the case of operating income , the inflow can be in cash (monetary income) as well as remuneration in kind (monetary income). Operating income that does not consist of money e.g. B. apartment, food, goods, services and other benefits in kind according to § 8 , para. 2 EStG with the customary discounts impaired usual final prices to be set at the delivery site.

Examples

• A doctor receives 1,000 euros in cash and 5,000 liters of heating oil from a private patient in return for his medical work. The 1000 euros and the monetary value of the heating oil are operating income , as they are in the context of income from self-employed work i. S. d. Section 2 Paragraph 1 No. 1 EStG i. V. m. 18 EStG. The saved operating expenses are not operating income, because the company does not receive any goods. The profit is increased by the saved operating expenses.
• Baker B runs a bakery. His wife E is a saleswoman and occasionally helps out free of charge. B does not have to record the value of E's workforce as business income, nor can he deduct saved wage expenses as business expenses.

Operational cause

The approach of the operating income therefore assumes that this is caused by the operation. It is crucial that there is an objective economic or actual connection between the income and the business. The operating income therefore not only includes the income that has been generated through commercial or professional activity, e.g. B. Income from sales of goods or services provided, but also

• Current, one-off and extraordinary income from business activity;
• Income from ancillary and auxiliary business, e.g. B. from the sale of fixed assets;
• Reimbursement of previous business expenses;
• as well as the income from the sale of assets that fall under Section 4 (5) of the Income Tax Act.

In this context, the case law of the Federal Fiscal Court names the whole range of income that is to be recognized as operating income. These are z. B. Income from the sale of used and no longer required machines and furnishings, reimbursed trade tax (overtaken by the corporate tax reform 2008), telephone, postage and packaging costs and also repaid bribes, even if they were not previously claimed as business expenses.

Are caused not operational revenues from the private transactions (private donations or legacies ) and the proceeds from the sale of assets of private property , even if a previous company shared use has been treated as an expense contribution. However, gifts that are given to the taxpayer in relation to the business relationship represent business income and are therefore to be assessed at the partial value .

Example: A brewery company gives its long-term main customer A, who runs a tavern and the income from commercial operations i. S. d. § § 2 Paragraph 2 No. 2 i. V. m. Section 15 of the Income Tax Act refers to a car for the anniversary. The value of the car represents business income for A if it can be proven that the business relationships of the parties involved were the only determinant for the donation.

Determination of profits

The concept of operating income applies to various types of profit determination. However, there is a difference in terms of profit impact.

Business asset comparison

When determining profits by comparing business assets in accordance with Section 5 EStG, operating income is recorded as soon as it is economically attributable to the company . The income is to be taken into account regardless of the time of payment .

Example: On October 5, 2014, G buys goods for € 10,000 net, which G pays by bank transfer. On October 10, 2014, G sells the goods on target to his customer H for € 20,000 net. The invoice is paid by H on January 10, 2015. On October 10, 2014, G posts trade accounts receivable to sales revenue of € 10,000 and sales tax of € 1,900. However, the (raw) income is only € 5,000, since goods worth € 10,000 have flowed out at the same time. The increase in business assets by € 15,000 is offset by a decrease of € 10,000.

Income-surplus-account

“When determining the profit by means of an income-surplus-calculation according to § 4 Abs. 3 EStG, neither activation nor passivation is possible. Thus, in this case, according to Section 11 (1) EStG , the operating income has an effect on the profit in the year in which it accrued. Also advances ( payments ) represent at the time an operating income represents, in which they are accrued, unless the accrued money within the meaning of § 4 para. 2 ITA has collected in the name and for the account of others and spent. "

Example: A lawyer B determines the profit in accordance with Section 4 (3) EStG. His client A instructs him to conduct a lawsuit and pays an advance of € 500. Of this, B pays € 200 for court costs to the court treasury. Lawyer B only has to set the advance fee of € 300 plus € 57 sales tax as operating income. The advance court costs are not to be taken into account either as operating income or as operating expenses when forwarded to the court treasury. The operating income in this form of profit determination does not include the amounts of money that have accrued through taking out a loan. However, the withdrawals or withdrawals of goods are to be assessed as operating income with the partial value insofar as these acquisition costs for the withdrawn objects have been treated as operating expenses.

Examples

Operating income	Explanation / examples
Severance payments	Contractual penalties for the execution of contracts
Expense allowances (for the recipient)	Expense allowances for volunteers if disadvantages from the operational or professional activity are compensated
Contribution subsidies	Contribution subsidies from an insurance company to its independent insurance agents for their health and life insurance
Bribes , kickbacks	For the donor according to Section 4 (5) sentence 1 no. 10 EStG there are no operating expenses, but operating income for the recipient
loan interest	Loan interest for company loans or for company bank and securities balances
Compensation	Compensation for lost income, for giving up or not exercising a business activity
Gifts	Gifts worth over 35 euros
Incentive trips	Reward trips, e.g. B. by large companies for their best sellers, biggest buyers
Compensation	Compensation for damage incurred in the operational or professional area (for the injured party)
Insurance compensation	Payment of business interruption insurance if this is economically related to the business

Individual evidence

1. ↑ Steuerlinks (Ed.) (2014), p. 1.
2. ↑ Rick, E .; Gierschmann, T .; Gunsenheimer, G .; Schneider, J .; Kremer, T .: Textbook income tax: Textbook income tax, 20th, revised and updated edition 2014. NWB Verlag, ISBN 978-3-482-53540-6 , p. 422.
3. ↑ See BFH, March 14, 1989- IR 83/85, BStBI 1989 II, 650.
4. ↑ See on the Internet: Profirma Professional (ed.), P. 1.
5. ↑ Bornhofer, M./Bornhofer MC (2014), p. 18.
6. ↑ Steuerlinks (Ed.) (2014), p. 2.
7. ↑ See Lippross (Hrgb.) (2014), Rz. 249 ff.
8. ↑ See on the Internet: Steuerlinks (Hrsg.) (2014), p. 2.
9. ↑ See BFH October 8, 1964 IV 365 / 62U, BStBI III, 1965 12; BFH May 28, 1968 IV 65/67, BStBI 1968 II, 581.
10. ↑ See Zimmermann, R. / Reyher, U. u. a. (2013), p. 91.
11. ↑ See BFH December 13, 1973 IR 136/72, BStBI 1974 II, 210.
12. ↑ See on the Internet: Steuerlinks (Hrsg.) (2014), p. 2.
13. ↑ Cf. Rick, E., Gierschmann, T., Gunsenheimer, G., Schneider, J., Kremer, T. (2014), p. 423.
14. ^ Cf. Rick, E., Gierschmann, T., Gunsenheimer, G., Schneider, J., Kremer, T. (2014), p. 424.
15. ^ Cf. Rick, E., Gierschmann, T., Gunsenheimer, G., Schneider, J., Kremer, T. (2014), p. 424.
16. ↑ See on the Internet: Profirma Professional (ed.), P. 3.