The legal question of whether the principles of business splitting also apply in cross-border situations was previously unclear and had not yet been clarified by the supreme court.
The prerequisite for a business split is that there must be close material and personal ties between the owning and operating companies (cf. in detail TXGT blog from 01/05/2019).
The BFH has now ruled in a case concerning a domestic owning company that leases a property located abroad to a foreign operating (capital) company that the principles of business splitting also apply here. For dogmatic reasons, there is no objective reason why the conditions for a business split should not exist in the case of a business property located abroad - from the perspective of the owning company.
