Combination to form a partnership
With combinations, several persons combine to form a partnership. At least one of the partners transfers an existing activity, a branch of an activity or a partnership share to the new partnership. The transfer is based on a combination contract and a balance sheet must be prepared at the combination date. The transferor receives partnership rights in exchange for the assets transferred. Combination is always by singular succession.
Under some circumstances it results in tax-neutral continuation at book value, avoiding tax on the sale of the business. Losses are not transferred to the partnership 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.
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