Nature of the income allocated to the partners
The nature of the income allocated to the partners is based on
how the income is classifed at the level of the partnership. A
partnership generates income from commercial business activity
(Einkünfte aus Gewerbebetrieb) if it is a commercial business
(Gewerbebetrieb).To qualify as a commercial business it has to
operate autonomously on a continuing basis, generate profts,
and participate in general commerce. Activities relating to
agriculture, forestry, and self-employed work are excluded. The
scope of the activities must constitute more than the mere man-
agement of private assets. A typical GmbH & Co. KG qualifes
by virtue of its legal form as a commercial business with trade
income.
Since the determination of income and the allocation of that
income to the partners are separate processes, income of a
commercial partnership must be determined in two stages.
EU Forecast
euf:ba.18g:5/nws-01