Article 40 of the KSA Income Tax Law establishes the tax treatment for a partner transferring personal assets into a partnership in exchange for a share. It stipulates that no gain or loss shall be calculated for this specific transaction. The value of the partner's acquired share is defined as the difference between the market value of the transferred asset and any amount paid to the partner. If the payment received by the partner exceeds the asset's market value, this excess amount is not treated as part of the transaction but is instead classified as a distribution from the partnership to the partner.