Which Earnings are in the Scope of Advance Tax?
1- The ones making money out of trade,
2- Self Employed people,
3- Corporate tax payers have to pay advance tax.
Ordinary partnerships, collective companies, limited companies; companies are not liable to tax, since they are not liable to corporate or income tax.
Only the earnings of the partners of ordinary partnerships or collective companies are liable to tax.
Who cannot declare advance tax?
1- If the corporate taxpayers of companies are in the process of liquidation,
2- Income tax payers on the basis of simple entry
3- The ones who make restoration and construction,
4- The ones who have income
5- The ones who have real estate property
6- The ones who have income from agriculture,
7- The ones who have other incomes
8- Self-employed people whose earnings are exempt from tax and the taxpayers who are notaries do not have liability to advance tax.
However, if the ones, who are not liable to advance tax, have an earning coming from another way, have the liability to advance tax.
What is Advance Tax Rates?
For the income taxpayers, tax will be imposed on %15 and
Fort the corporate taxpayers, tax will be imposed on %20.
How is advance tax calculated?
1- For the income tax payers, advance tax will be calculated within the calculation period of three months as %15 on the basis of income.
2- For the corporate tax payers, advance tax will be calculated within the calculation period of three months as %20 on the basis of income.
Paid tax in the same period will be declared if it exists. The rest will be calculated as the advance tax.
Is there any discount or exemptions while calculating advance tax?
Tax payers are able to benefit from discount or exemptions during the calculation period of advance tax.
What will be done if advance tax is not declared properly?
If more than %10 of advance tax is not declared properly, penalty and default interest will be imposed. %10 margins of error have to be declared over tax assessment.
How will default interest be calculated, if advance tax is not paid on time?
Declared but unpaid advance tax will be detected, and default interest will be imposed on the date of declaration.
Is unpaid advance tax be collected from income or corporate tax declared annually?
It is not possible to collect advance tax from income or corporate tax declared annually.
Is it possible to collect unpaid advance tax from the advance tax to be calculated in in the following declaration period?
It is possible to collect unpaid advance tax from the advance tax to be calculated in the following declaration period.
Advance tax will be collected from the income or corporate tax calculated annually.
What will be done for the declared but unpaid tax?
Advance tax amount, declared over 3 months earnings and unpaid and calculated over annual tax declaration, will be deleted.
Default interest will be imposed on declared but unpaid and deleted advance tax. (for the income tax payers 1st March, and for the corporate tax payers 1st April )
Is it possible to discount paid social security organization for artisans and the self-employed premiums on advance tax declaration?
Social security organization for artisans and the self-employed d premiums will be discounted in a limited way if the payment can be detected.
On the condition of not having an earning from the declaration made annually or having not enough earning, paid self-employed premiums will be discounted over income tax payers’ earning and the rest will also be discounted.
Self-Employed Premiums will be show on the declaration as “other payment”.
When are the declaration and payment terms for advance tax?
How will advance tax be imposed on employers who has quit their job, or newly started to work?
Taxpayers, who have started working, will also start to pay tax from the declaration period in which they start working.
On the condition of quitting her/his job, there will not be a tax declaration anymore.
The companies which are on the liquidation process will pay tax after their liquidation process started and after that period they will not give advance tax declaration.
Do construction companies give advance tax declaration?
Each and every company has to give advance tax declaration except for the construction and reconstruction companies.
According to the balance sheet is it possible to exempt the income and corporate taxpayers who keep records from tax?
In the calculation of advance tax assessment and income tax detection, last years’ loss will be taken into consideration.
Source: Revenue Administration
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