MuhasebeNews – Muhasebe News

If a person who is a partner in a limited company opens a sole proprietorship, can the young entrepreneur benefit from the income exemption?

MuhasebeNews — Wed, 04 Dec 2024 08:38:15 +0000

Request for a private ruling states that you became a partner in an existing limited liability company as a civil engineer in 2014 to carry out your project works, and now you intend to leave the partnership and establish a sole proprietorship under your name. You are under 29 years of age and will be establishing a sole proprietorship for the first time. However, you seek clarification on whether you can benefit from the income exemption for young entrepreneurs under Article 20, repeated, of the Income Tax Law, despite your prior partnership in a limited liability company. Below is the opinion of the Presidency on the matter:

Under Article 20, repeated, of the Income Tax Law No. 193, individuals who establish their income tax liability for the first time due to commercial, agricultural, or professional activities, and who are under the age of 29 at the start of their tax liability, can benefit from an income tax exemption on earnings up to 75,000 Turkish Liras for three tax periods, provided they meet certain conditions:

Notification of business commencement within the legal timeframe.
Active involvement in the business or its direct management.
Meeting the specified conditions collectively if the activity is conducted through a partnership or sole proprietorship.
Not acquiring the activity from a spouse or relative up to the third degree (inclusive), except in cases of inheritance.
Not joining an existing business or professional activity as a partner later.

Even if no earnings are derived from the activities within the exemption scope or if earnings fall below the exemption limit, an annual tax declaration is still required.

The exemption does not cover taxes to be withheld under Article 94 of the Law.

Furthermore, details on benefiting from this exemption are elaborated in Income Tax General Communiqué No. 292.

According to the law, dividends obtained from shares in a limited liability company are classified as income from movable capital, which requires the establishment of income tax liability for movable capital income if declared.

However, the establishment of income tax liability for movable capital income does not affect eligibility for the young entrepreneur income exemption, as the exemption applies only to those establishing income tax liability for the first time due to commercial, agricultural, or professional activities.

In conclusion, if you meet all the conditions specified in Article 20, repeated, of the Income Tax Law and Communiqué No. 292, you may benefit from the exemption for earnings derived from your freelance professional activities.

Revenue Administration – Special Note
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Will the person who pays accommodation tax also submit the tourism share declaration?

MuhasebeNews — Wed, 04 Dec 2024 08:32:47 +0000

Will the accommodation taxpayer also submit the tourism share declaration?

Yes, tourism businesses that fall within the scope of the Tourism Share Declaration General Communiqué will submit the Tourism Share Declaration.

The accommodation tax is collected from the customer and paid to the tax office. The Tourism Share Tax is collected from the total of the net sales and rental incomes obtained by real or legal persons who are investors or operators of commercial enterprises as a result of their activities in these enterprises at the rates listed in the Communiqué.

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Will e-Invoice or e-Archive Invoice be issued for Micro Exports in Türkiye?

MuhasebeNews — Wed, 04 Dec 2024 07:18:25 +0000

Invoices to be issued for micro exports will continue to be issued as e-archive invoices if the sender is an e-archive user, otherwise as paper invoices. Neither the GTB nor the Presidency has any regulation on this issue, and unless otherwise stated, printed (paper/e-Archive) invoices will continue to be issued.

We send goods abroad through cargo companies. Should the invoices related to these be e-Invoices?

In this method called Micro Export, instead of the Customs Exit Declaration, the Electronic Commerce Customs Declaration is used by cargo companies and it is not included in the scope of e-Invoice in the current process. Therefore, printed (paper/e-archive) invoices will continue to be issued for export transactions carried out within this scope.

December 2024 Rent Increase Rate in Türkiye Announced!

MuhasebeNews — Wed, 04 Dec 2024 07:06:03 +0000

Maximum rent increase rate for December 2024 is 60.45%

The domestic producer price index (DPI) and consumer price index (CPI) inflation rates are announced in the first week of each month.

When the rates are announced, it becomes clear at what rate the rent increases will be made.

The statistical data published on December 3, 2024 and the CPI table, which determines the upper limit of rents to be renewed in December 2024, were also announced.

According to the statement by TURKSTAT, the CPI (Consumer Price Index Monthly) increased by 2.24% monthly in November.

The comparative increase table in the CPI, which accepts 2003 as the beginning in the calculation, was as follows;

1- 2.24% in November 2024 compared to the previous month
2- 47.09% compared to the same month of the previous year
3- 42.91% compared to December of the previous year (2023-December)
4- 60.45% increase compared to twelve-month averages

The increase in workplace and residential rents is calculated according to the twelve-month AVERAGE change in the CPI.

Accordingly, a maximum of 60.45% increase can be made to RENT in DECEMBER 2024.

Which taxes can the tax office block taxpayers’ bank accounts if they are not paid?

MuhasebeNews — Mon, 02 Dec 2024 13:21:31 +0000

If provisional tax is not paid, can the tax office block bank accounts?

In accordance with the provisions of Law No. 6183 on the Procedure for Collection of Public Receivables, the tax office and other institutions may apply e-seizure for debts owed to the tax office and other public institutions. Depending on the situation, it may also apply seizure or e-seizure to the assets of the taxpayer and the company owner, partners and managers who are jointly responsible for the debt in accordance with the relevant Law. It may request the debt that cannot be collected from the taxpayer from his/her legal representatives.

How will the VAT withheld invoice be refunded?

MuhasebeNews — Mon, 02 Dec 2024 13:19:56 +0000

EXAMPLE

Transportation Cost= 10,000 TL
Calculated VAT (%20)= 2,000 TL
Withheld VAT 2/10= 400 TL
VAT to be collected= 1,600 TL
Invoice total= 11,600 TL

Accounting record example of the buyer company that issues the return invoice to the seller

______________________ / ______________________

320 (B) 11,600 TL

770 (A) 10,000 TL

391 (A) 1,600 TL

______________________ / ______________________

Accounting record example of the seller company that receives the return invoice from the buyer example

______________________ / ______________________

610 (B) 10,000 TL

191 (B) 1,600 TL

120 (A) 11,600 TL

______________________ / ______________________

Is there an obligation for a general partnership to use e-notification?

MuhasebeNews — Mon, 02 Dec 2024 13:17:46 +0000

Ordinary partnerships do not have a legal entity and are not subject to income (corporate) tax. If they operate as an ordinary partnership, the partnership is subject to withholding tax and value added tax, and in ordinary partnerships, the partners are jointly and severally liable for the payment of withholding tax, VAT and other taxes assessed on behalf of the partnership.

In addition, if the partner of the ordinary partnership has a legal entity, the profits he/she earns will be subject to corporate tax, and if he/she is a natural person, he/she will be subject to income tax. In the 4th section of the Tax Procedure Law General Communiqué No. 456 titled “Persons to be Notified Electronically”, corporate taxpayers who are required to use an electronic address suitable for notification and to whom notifications can be made electronically are as follows; Since they are determined as those who are subject to income tax in terms of commercial, agricultural and professional income (excluding farmers whose income is determined by the simple method and those who are not subject to tax in the real method), e-notification activation is required on behalf of the partners of the ordinary partnership due to their income and/or corporate tax liabilities.

On the other hand, since ordinary partnerships are not listed among those who are required to use an electronic address suitable for notification in the Tax Procedure Law General Communiqué numbered 456, they are not required to be included in the e-notification system, but of course they can optionally benefit from the system if they request electronic notification on behalf of the partnership.

Source: Revenue Administration Special Notice
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Can the sales amount exceeding 30,000 TL be collected in cash in parts?

MuhasebeNews — Mon, 02 Dec 2024 12:57:51 +0000

As of November 30, 2024, the cash payment and collection limit of 7,000 TL has been increased to 30,000 TL.

If the invoice amount is over 30 thousand TL, cash collection cannot be made even if the installment amounts are below 30 thousand TL.

The relevant section of the Tax Procedure Law Communiqué No. 459 regarding the legal regulation is given below.

Section 4.1.2. Collections and Payments Made Section by Section

If the transaction amount subject to collection and payment exceeds the limit determined in section (4.1.) of this Communiqué within the scope of the documentation requirement, the total amount of the transaction will be taken into account in the payment of the amount in parts on different dates and each collection and payment will be made through intermediary financial institutions within the scope of the documentation requirement.

“Example: Taxpayer (T), who practices the profession of lawyer, will receive 160,000 TL in return for legal consultancy services to be provided to (K) Inc. for one year. According to the agreement between them, (K) A.Ş. will pay the service fee in installments of 15,000 TL. In this case, the preparation of the freelance receipt for 15,000 TL on the dates when the installments are paid will not eliminate the requirement of documentation, and since the total amount of the contract exceeds the specified limit, each collection and payment made in parts will be documented through intermediary financial institutions.

In case of non-compliance with the requirement of documentation in the collection and payments in question, separate penalties will be imposed on freelancers (T) and (K) A.Ş

Source: https://www.mevzuat.gov.tr/File/GeneratePdf?mevzuatNo=21303&mevzuatTur=Teblig&mevzuatTertip=5
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

How Is a Temporary Employment Relationship Established, and When Is It Deemed Invalid?

MuhasebeNews — Thu, 21 Nov 2024 12:59:38 +0000

According to Article 7 of the Labor Law No. 4857, a temporary employment relationship can be established through a private employment agency or by assigning an employee within a holding or another workplace belonging to the same group of companies.

Establishing a Temporary Employment Agreement via a Private Employment Agency

A temporary employment agreement through a private employment agency may be established in the following circumstances:

During maternity leave, unpaid leave granted voluntarily following maternity leave, or part-time work after maternity leave;
When the employee is performing military service or in other cases where the employment contract is suspended;
In seasonal agricultural work;
In domestic services;
For tasks not considered part of the employer’s daily operations and performed intermittently;
For urgent tasks related to occupational health and safety or when compelling reasons significantly affecting production arise;
In cases of unforeseen and temporary increases in the enterprise’s average production capacity;
For periodic increases in workload, excluding seasonal work.

Duration of Temporary Employment Agreements

For maternity leave, unpaid leave following maternity leave, part-time work after maternity leave, military service, and other cases where the employment contract is suspended, the agreement can last as long as these situations persist.
In seasonal agricultural work and domestic services, there is no time limit.
For other cases, the agreement can be established for up to four months. It may be renewed twice but cannot exceed a total of eight months, except for periodic increases in workload.
When the enterprise’s average production capacity rises unexpectedly and requires a temporary employment relationship, an agreement may be established in writing for up to six months and can be renewed twice.

Prohibitions and Invalidity Conditions

In workplaces where collective layoffs have occurred, a temporary employment relationship cannot be established for eight months.
Temporary employment relationships cannot be established in public institutions or organizations or in workplaces involved in underground mining.
Employers using temporary workers cannot employ such workers during strikes or lockouts, except under the provisions of Article 65 of the Trade Unions and Collective Bargaining Agreement Law No. 6356.
Employers cannot rehire temporary workers for the same job within six months after the expiration of the specified temporary employment period.

These provisions ensure that temporary employment relationships are used appropriately and under the conditions stipulated by the law.

Source: Republic of Türkiye Ministry of Labor and Social Security
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

How is wage calculated if working on holidays?

MuhasebeNews — Thu, 21 Nov 2024 12:57:05 +0000

How is the employee paid if they work on national holidays and public holidays?

If they do not work on any national holiday or public holiday, the employer will pay the full wage for that day. If the employee works on holidays, an additional daily wage must be paid for each day they work.

For example, in April, a person who does not work on the April 23rd public holiday but works on all other days is entitled to 30 days’ wages, while a person who also works on April 23rd will be entitled to an additional daily wage due to their public holiday work and will receive 31 days’ wages.

Is it mandatory not to work on national holidays and public holidays?

A written provision can be included in the employment contract signed with the employer regarding whether or not work will be done on national holidays and public holidays, or if there is a collective labor agreement in effect at the workplace, a general regulation can be made in this regard with the collective labor agreement.

In these cases, the provisions in the contracts are followed.

However, in cases where there is no written provision, the employer must obtain the employee’s written consent in advance in order to request work on any national or public holiday.