Art. 16 Tax Law (TL)

1 All income derived from a self-employed gainful activity, such as the operation of a commercial, industrial, artisanal, agricultural, or forestry enterprise, or the practice of a liberal profession, is taxable.

2 Such income notably includes

a) capital gains resulting from the alienation, realization, or accounting revaluation of elements of the business assets; the transfer of business assets into private assets or into an enterprise or permanent establishment located abroad is considered an alienation;

b) capital gains resulting from the non-temporary leasing of an enterprise, considered as a transfer into private assets, subject to Article 16a, paragraph 1;

c) withdrawals by the operator for private purposes;

d) the realized, but not yet taxed, value of the taxpayer's personal labor in the interest of his immovable property (Article 97, paragraph 2, letter e), with such labor being assessed at current value.

2bis Business assets comprise all elements of the assets that serve, entirely or predominantly, the exercise of the self-employed gainful activity; the same applies to shares of at least 20% in the share capital or capital stock of a stock company or a cooperative, insofar as the holder declares them as business assets at the time of acquisition.

3 Article 70 applies by analogy to taxpayers who keep accounts in proper form.

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