§ 25 Tax Act (StG) - Independent Professional Activity

1. All income derived from a commercial, industrial, business, agricultural, and forestry enterprise, from a freelance occupation, as well as from any other self-employed activity, is subject to taxation.

2. Income from self-employed activity also includes all capital gains from the sale, utilization, or book valuation increases of business assets. The transfer of business assets to private assets or foreign enterprises or permanent establishments is equivalent to a sale. Business assets are considered to include all assets that primarily or entirely serve the purpose of self-employment. The same applies to holdings of at least 20 percent in the share capital or basic capital of a corporation or cooperative, provided the owner declares them as business assets at the time of acquisition. § 25b is reserved.

3. For taxpayers who maintain proper accounting records, § 72 applies correspondingly.

4. Capital gains in the sense of paragraph 2 on agricultural and forestry properties are taxable to the extent of the difference between the relevant income tax value and the acquisition costs.

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