Division of a partnership

With division, an activity or branch of an activity, or a share in a partnership, is divided among the partners. In most cases, compensation must be paid because the activities do not correspond precisely to the participating interests. The compensation payments are tax-neutral. Division results in transfer by singular succession.

A division balance sheet must be prepared. The taxation of undisclosed reserves during the transfer of assets can be avoided under certain conditions. Losses are not transferred for tax purposes, as they are retained by the individual partners.


In general, these rules apply to all entrepreneurs from EU Member States in Austria.

Translated by the European Commission
Last update: 18 January 2021

Responsible for the content: Federal Ministry for Digital and Economic Affairs

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