Economical business operations

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The economic operations is a term from the German and Austrian tax law . It is defined as an independent and sustainable activity through which income or other economic advantages are achieved and which go beyond the scope of pure asset management ( § 14 Tax Code or § 31 Federal Tax Code ). It is not necessary that there is an intention to make a profit .

The concept of economic business operations is particularly relevant to the distinction between private asset management and commercial or professional activity. While income from private asset management - with the exception of speculative transactions - is irrelevant for tax purposes, an economic business operation usually leads to income taxable profits or losses.

Special forms are the commercial operation (BgA) as a commercial business operation of legal entities under public law and the commercial business operation also defines the sub-area of ​​a non-profit organization in Germany and Austria that forms an economically active branch. In Germany the special-purpose enterprise and in Austria the dispensable or indispensable auxiliary enterprise constitute a tax-exempt special case of economic business operations.

Differentiation from asset management

Asset management is given with the interest-bearing investment of capital assets and the renting and leasing of immovable assets . If the activity goes beyond this, the following indications and features serve to distinguish:

  • the volume of business,
  • maintaining an office
  • the use of bookkeeping to determine profits
  • the extensive organizational structure for carrying out the business,
  • the application of the activity,
  • offering the service / products to a wider public.