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May 15, 2026

Part 3 - Chargeability to Tax

Chapter 3 - Depreciation of Capital Assets

Section 6 - Provisions Concerning the Disposal of Capital Assets

Article 98

[GTL Notes: Scope of Application for Capital Asset Disposal]

The provisions of this Section shall apply to the cases where a capital asset that was previously subjected to the provisions of this Chapter, has been sold or destroyed, if such disposal or destruction involves other assets, provided:

  1. The sale price or the compensation amount relates to all the assets sold or destroyed;

  2. The sale price has been fixed in accordance with a contract or arrangement agreed between the parties, and has been divided between the assets sold at same time by the seller and the same purchaser, either in accordance with the same contract or other separate contracts, or similar insurance compensations divided between the insured and the insurance company.