Sole traders and free professions who are profit tax payers are in view of taxation and accounting treated in the same way as companies. Termination of such activities should be recorded taking into consideration the equal tax and accounting regulations as those which refer to companies.
However, regardless of the fact that sole traders and free professions – profit makers are treated in the same way as companies in view of accounting and taxation regulations, they are still physical persons, which means that the assets which are used in performing their activities are their personal property. Thus, in the case of termination of the business activities, the sales of such assets is to be treated in the same way as with the assets of a company, taking into consideration the VAT payment. Similar to the sales, the long-term assets should be removed from the records on activities and record the receivables per market value, including income.
In such a case the sole trader has a role of a buyer. Receivables may be settled from the retained profit after payment of the income tax from the capital based on the payment of the retained profit, the capital based on the investments of the sole trader – profit maker, recorded in the initial balance sheet upon the changed way of taxation unless it has been spent, as well as payment on the giro account of his/her own assets. In the case of lack of assets for settlement of the receivables, the sole trader is obliged to calculate the income tax from the capital based on deduction of the long-term assets without fee at 36% fee, increased by the sur-tax at the re-calculated rate.