(2023) What is the half-income / partial income procedure?

The half-income procedure was replaced on 1 January 2009 by the partial income procedure.

Under the half-income procedure, income from shares in corporations (shares, GmbH shares, cooperative shares) is only 50% taxable. Advertising costs related to this can also only be deducted by half. If such shares are part of business assets, the income from them - after deducting half of the expenses - is to be taxed as income from business operations.

If your income from business operations (as a sole trader, from a partnership, according to separate determination, from a group) includes income for which the half-income procedure applies, enter this amount here as a total. Only the half taxable partial amount!

Under the partial income procedure, income and capital gains from shares in corporations (shares, GmbH shares, cooperative shares) are 60% taxable. In return, only 60% of the expenses are deductible as advertising costs. So if you hold shares in corporations as business assets, you must separately declare dividends and profit distributions received, which are included in your income from business operations or self-employment and are only 60% taxable, in Form G or Form S.