Tax – Muhasebe News https://www.muhasebenews.com Muhasebe News Tue, 08 Oct 2024 11:11:08 +0000 en-US hourly 1 https://wordpress.org/?v=6.3.5 Freelance work carried out by opening an office abroad https://www.muhasebenews.com/en/freelance-work-carried-out-by-opening-an-office-abroad/ https://www.muhasebenews.com/en/freelance-work-carried-out-by-opening-an-office-abroad/#respond Tue, 08 Oct 2024 11:11:08 +0000 https://www.muhasebenews.com/?p=156415 The ruling from the Tax Authority evaluates the tax situation of a taxpayer who conducts a freelance profession by opening an office abroad.

  • Income Tax: The taxpayer must declare income earned both in Turkey and abroad. Income earned abroad is considered to be earned in the year it is transferred to accounts in Turkey and must be included in the tax return for that year. Income tax withholding is not applied to expenses for an office abroad, but double taxation treaties should be considered.
  • Tax Procedure Law: A freelancer can open a liaison office abroad but cannot open a branch. The books used for domestic activities cannot be used for foreign activities; new books must be kept.
  • Value Added Tax (VAT): Services provided abroad are not subject to VAT unless they are used in Turkey. VAT cannot be refunded for expenses incurred abroad.

In summary, the taxpayer must declare income earned in both Turkey and abroad separately, comply with the tax laws of each country, and consider double taxation treaties.

Source: Revenue Administration
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.

]]> https://www.muhasebenews.com/en/freelance-work-carried-out-by-opening-an-office-abroad/feed/ 0 How is the completion date determined for long-term construction and repair projects in Turkey? https://www.muhasebenews.com/en/how-is-the-completion-date-determined-for-long-term-construction-and-repair-projects-in-turkey/ https://www.muhasebenews.com/en/how-is-the-completion-date-determined-for-long-term-construction-and-repair-projects-in-turkey/#respond Sun, 18 Aug 2024 12:20:17 +0000 https://www.muhasebenews.com/?p=153559 According to Article 42 of the Income Tax Law, in construction and repair projects that span more than one calendar year, the profit or loss is definitively determined in the year the project is completed, and the entire amount is considered income for that year and must be declared in the tax return for that year. Article 44 of the same law states that for construction and repair projects subject to provisional and final acceptance procedures, the date on which the provisional acceptance report is approved by the relevant authority is considered the completion date. In other cases, the date on which the project is actually completed or abandoned is accepted as the completion date.

Whether a construction contract is considered long-term depends on whether the start and completion of the project occur in different calendar years. If the parties have stipulated in the contract that the project will be completed in the following calendar year, taxation will be based on progress payments accordingly. The completion date is crucial in determining whether a project is long-term; however, even if the contractor promises to complete the project earlier than planned, this does not require a change in the taxation regime. Therefore, tax withholding should be applied to payments made to contractors for such projects.

 

 

 

 

 

 

Source: GİB
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.

]]> https://www.muhasebenews.com/en/how-is-the-completion-date-determined-for-long-term-construction-and-repair-projects-in-turkey/feed/ 0 How can the reduced tax rate benefit be applied in the event of a transfer of the investment before it becomes operational or after it has partially or fully commenced operations? https://www.muhasebenews.com/en/how-can-the-reduced-tax-rate-benefit-be-applied-in-the-event-of-a-transfer-of-the-investment-before-it-becomes-operational-or-after-it-has-partially-or-fully-commenced-operations/ https://www.muhasebenews.com/en/how-can-the-reduced-tax-rate-benefit-be-applied-in-the-event-of-a-transfer-of-the-investment-before-it-becomes-operational-or-after-it-has-partially-or-fully-commenced-operations/#respond Sun, 18 Aug 2024 12:17:57 +0000 https://www.muhasebenews.com/?p=153557 In the event that the investment is transferred before it becomes operational, the transferee company will be able to benefit from the reduced tax rate, provided that it fully complies with the conditions specified in the relevant legislation. However, the transferor company cannot benefit from the reduced tax rate due to this investment if the transfer occurs before the investment becomes operational.

If the investment is transferred after it has partially or fully commenced operations, the reduced tax rate can be applied by the transferor up to the date of the transfer, and by the transferee after the date of the transfer, provided that they meet the conditions specified in the relevant legislation.

 

 

 

 

 

Source: GİB
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.

]]> https://www.muhasebenews.com/en/how-can-the-reduced-tax-rate-benefit-be-applied-in-the-event-of-a-transfer-of-the-investment-before-it-becomes-operational-or-after-it-has-partially-or-fully-commenced-operations/feed/ 0 Actions to be taken on tax returns by taxpayers subject to inflation adjustment of balance sheets in the second quarter of 2024 in Turkey https://www.muhasebenews.com/en/actions-to-be-taken-on-tax-returns-by-taxpayers-subject-to-inflation-adjustment-of-balance-sheets-in-the-second-quarter-of-2024-in-turkey/ https://www.muhasebenews.com/en/actions-to-be-taken-on-tax-returns-by-taxpayers-subject-to-inflation-adjustment-of-balance-sheets-in-the-second-quarter-of-2024-in-turkey/#respond Sun, 18 Aug 2024 11:09:51 +0000 https://www.muhasebenews.com/?p=153555 Actions to be taken on tax returns by taxpayers subject to inflation adjustment of balance sheets in the second quarter of 2024 in Turkey:

1. For income or corporate taxpayers keeping books on the balance sheet basis:

When determining the taxable income to be declared in the annual income tax and corporate tax returns, as well as in the provisional tax returns, starting from the 2024 fiscal period, taxpayers shall take into account the non-deductible past year financial losses related to the 2023 and previous fiscal periods, based on the pre-adjustment balance sheets, at their book values.

2. According to the last paragraph of subsection (5) of paragraph (A) of the repeated Article 298 of Law No. 213:

“In determining the taxable base, non-deductible expenses, exemptions, and past year financial losses shall be taken into account at their amounts adjusted for inflation.”

Pursuant to this provision, income or corporate taxpayers keeping books on the balance sheet basis shall:

a) When determining the taxable base to be declared in their annual income tax and corporate tax returns, as well as in their provisional tax returns, to be submitted from the beginning of the 2024 fiscal period, take into account the past year financial losses for the 2024 and subsequent fiscal periods, based on the balance sheet at the end of the adjusted 2023 fiscal period, at their amounts adjusted for inflation, depending on the existence/continuation of the conditions for making inflation adjustments.

b) When determining the taxable base to be declared in their provisional tax returns and annual income tax and corporate tax returns for the 2024 fiscal period, they shall:

  • Consider the non-deductible expenses arising from non-monetary assets subject to adjustment on the balance sheet at their adjusted amounts;
  • Take into account tax-exempt income at the amounts determined by including the differences resulting from the adjustment of the balance sheets on which this income is based, and no further adjustment will be made on the tax return.

In this context, expenses such as traffic fines, non-deductible portions of fuel expenses for passenger vehicles, and motor vehicle tax payments, which cannot be considered as expenses, shall not be subject to inflation adjustment and will be treated as non-deductible expenses on the tax return at their existing amounts. Expenses such as excess depreciation amounts, which are subject to inflation adjustment, will be treated as non-deductible expenses on the tax return at their adjusted amounts.

For example, a taxpayer (M) who keeps books on the balance sheet basis with a calendar year fiscal period purchased a passenger vehicle on 15/07/2022 for a total price of 1,000,000 TL, including VAT and SCT, to be used in their commercial enterprise, and included the taxes paid during the acquisition in the cost of the vehicle. The taxpayer calculates annual depreciation under the normal depreciation method according to general provisions and treats the portion of the depreciation amount exceeding the amount that can be considered as an expense in determining the net income as a non-deductible expense.

The taxpayer will subject their 2023 and 2024 balance sheets to inflation adjustment and will depreciate the passenger vehicle based on its adjusted value as of 31/12/2024. However, the depreciation amount corresponding to the portion of the cost exceeding the depreciation base determined according to the Income Tax Law will be treated as a non-deductible expense.

Additionally, since the adjusted depreciation in the 2024 balance sheet will include depreciation amounts previously treated as non-deductible expenses, the portion of the differences arising in the accumulated depreciation account due to the adjustment of the 2024 balance sheet corresponding to these amounts will also need to be treated as non-deductible expenses on the tax return.

Thus, non-deductible expenses will be considered at their adjusted amounts on the tax return.

Similarly, tax-exempt income will be determined according to the balance sheets subject to inflation adjustment, and the income amounts adjusted for inflation will be deductible on the tax return.

For example, a taxpayer operating in a free zone with all of their income being exempt may subject their 2024 balance sheet to adjustment and show the income amount resulting from the adjustment as an exemption on the tax return, thus deducting it from the taxable base.

3. For adjustments limited to the balance sheet as of the end of the 2023 fiscal period:

The amount of non-depreciated real financing costs deducted from the cost or purchase price of assets with unexpired depreciation periods may be considered as an expense in determining the income for the 2024 and subsequent fiscal periods over five years and in equal installments. Since these real financing costs will not appear on the balance sheet in the inflation adjustment application, they must be deducted on the tax return at their book values.

However, if the depreciable asset is sold after 01/01/2024, the unamortized portion of the real financing cost as of the sale date may be considered as an expense in the fiscal period in which the asset is sold.

 

 

Source: VUK 555
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.

]]> https://www.muhasebenews.com/en/actions-to-be-taken-on-tax-returns-by-taxpayers-subject-to-inflation-adjustment-of-balance-sheets-in-the-second-quarter-of-2024-in-turkey/feed/ 0 Will VAT be calculated on the delivery of goods made in Turkey to a foreign company? https://www.muhasebenews.com/en/will-vat-be-calculated-on-the-delivery-of-goods-made-in-turkey-to-a-foreign-company/ https://www.muhasebenews.com/en/will-vat-be-calculated-on-the-delivery-of-goods-made-in-turkey-to-a-foreign-company/#respond Sun, 18 Aug 2024 10:59:34 +0000 https://www.muhasebenews.com/?p=153552 Yes, even if the customer is foreign, VAT must be calculated if the goods are delivered in Turkey. If the customer receiving the goods is an exporter in Turkey and the supplier is the manufacturer, an export-registered invoice can be issued.

 

 

 

 

 

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.

]]> https://www.muhasebenews.com/en/will-vat-be-calculated-on-the-delivery-of-goods-made-in-turkey-to-a-foreign-company/feed/ 0 When should a corporate tax return be filed for taxpayers subject to a special accounting period in Türkiye? https://www.muhasebenews.com/en/when-should-a-corporate-tax-return-be-filed-for-taxpayers-subject-to-a-special-accounting-period-in-turkiye/ https://www.muhasebenews.com/en/when-should-a-corporate-tax-return-be-filed-for-taxpayers-subject-to-a-special-accounting-period-in-turkiye/#respond Fri, 16 Aug 2024 11:15:44 +0000 https://www.muhasebenews.com/?p=153495 When should the corporate tax return for a taxpayer subject to the special accounting period of 01.07.2023-30.06.2024 be filed?

It should be filed between the 1st and the 31st of the 4th month following June 30, 2024 (01-31/10/2024).

The relevant article in the Corporate Tax Law regarding the filing time is as follows:

Taxation period and declaration Article 25

  1. The taxation period for corporations taxed on an annual declaration basis is the accounting period. However, for those assigned a special accounting period, the taxation period is their special accounting period.
  2. In cases where taxes are paid by withholding and the beneficiaries do not file an annual or special tax return, the periods to which the withholding tax relates are considered as the taxation period.
  3. For profits declared through the returns filed under Article 26 of the Law, the date of income realization is considered instead of the taxation period for tax purposes.
  4. The annual corporate tax return must be submitted to the tax office where the company’s business establishment or permanent representative is located in Turkey, or if there is no business establishment or permanent representative in Turkey, to the tax office where the income earners connected to the foreign company are registered.
  5. The return must be submitted between the first day and the evening of the twenty-fifth day of the fourth month following the month in which the accounting period ends, or within fifteen days before the taxpayer leaves Turkey if they are leaving the country.
  6. The form, content, and annexes of the returns are determined by the Ministry of Finance. Taxpayers are required to file their returns in accordance with these forms or declare the information in these forms.

Special declaration time for incomes Article 26

  1. In cases where the taxable income of foreign corporations subject to limited tax liability consists of other incomes and revenues stated in the Income Tax Law (except for the payments received in return for the sale, transfer, or assignment of copyrights, privileges, patents, business names, trademarks, and similar intangible rights), the foreign corporation or its representative in Turkey is required to declare these incomes within fifteen days from the date of income realization to the tax office specified in Article 27 of the Law.
  2. Excluding the provisions regarding exchange rate gains arising during the disposal of securities and participation shares obtained in return for cash or in-kind capital brought into Turkey, the limitations regarding the exceptions, conditions, and periods related to non-taxation in the Income Tax Law are not considered.

Place of filing the return Article 27

  1. The corporate tax return related to the incomes for which a special declaration time is assigned shall be filed at the tax office: a. In the location where the real estate is situated for gains and revenues arising from the disposal of real estate; b. In the location where movable property and rights are disposed of in Turkey for gains and revenues arising from their disposal; c. In the location where the commercial or agricultural business is situated for gains and revenues obtained in return for the cessation or abandonment of its activities; d. In the location where the activity is carried out for gains obtained from incidental commercial transactions or brokerage in such transactions, as well as from incidental self-employment activities; e. In the location where the passenger or cargo is taken on board for gains obtained from incidental transportation activities between Turkey and foreign countries; f. In the location where the payment is made in Turkey for other gains and revenues related to abandoned businesses, including the collection of bad debts written off and provisioned doubtful receivables, as well as for gains obtained without ever engaging in commercial, agricultural, or professional activities or participating in auctions, tenders, or discounts; g. In other cases, at the tax office determined by the Ministry of Finance.

The addressee of taxation, time of taxation, and place of taxation Article 28

  1. The tax of foreign corporations subject to limited tax liability is assessed in the name of their manager or representative in Turkey; if there is no manager or representative, it is assessed in the name of those providing the income and revenues to the foreign corporation.
  2. Corporate tax is assessed on the day the return is submitted to the tax office; if the return is sent by mail, it is assessed within three days following the date the return reaches the tax office.”

 

 

 

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.

]]> https://www.muhasebenews.com/en/when-should-a-corporate-tax-return-be-filed-for-taxpayers-subject-to-a-special-accounting-period-in-turkiye/feed/ 0 Is an employee who starts working during the year in Türkiye required to present their cumulative income tax base to the new employer? https://www.muhasebenews.com/en/is-an-employee-who-starts-working-during-the-year-in-turkiye-required-to-present-their-cumulative-income-tax-base-to-the-new-employer/ https://www.muhasebenews.com/en/is-an-employee-who-starts-working-during-the-year-in-turkiye-required-to-present-their-cumulative-income-tax-base-to-the-new-employer/#respond Fri, 16 Aug 2024 09:58:55 +0000 https://www.muhasebenews.com/?p=153492 What is the employer’s responsibility regarding whether an employee who starts working during the year provides a document from their previous workplace showing the cumulative income tax base and the withheld income tax?

Legally, there is no such obligation.

If the new employer accepts it, the total tax base can be taken into account as the starting value at the new workplace.

According to the conditions in Article 86 of the Turkish Income Tax Law, an annual Income Tax return may or may not be required.

For more information on this topic, please refer to Income Tax Law Communiqué No. 311.

 

 

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.

]]> https://www.muhasebenews.com/en/is-an-employee-who-starts-working-during-the-year-in-turkiye-required-to-present-their-cumulative-income-tax-base-to-the-new-employer/feed/ 0 Can rediscount be applied to postdated checks in Türkiye? How is the rediscount calculated and what is an example of an accounting entry? https://www.muhasebenews.com/en/can-rediscount-be-applied-to-postdated-checks-in-turkiye-how-is-the-rediscount-calculated-and-what-is-an-example-of-an-accounting-entry/ https://www.muhasebenews.com/en/can-rediscount-be-applied-to-postdated-checks-in-turkiye-how-is-the-rediscount-calculated-and-what-is-an-example-of-an-accounting-entry/#respond Fri, 16 Aug 2024 09:52:45 +0000 https://www.muhasebenews.com/?p=153483 Can rediscount be applied to postdated checks?

Rediscounting can be applied to checks.

The rediscount calculation formula is as follows:

Rediscount Amount = (Nominal Value x Interest Rate x Number of Days) / (36,000 + (Interest Rate x Number of Days))

Example Calculation:

Check Maturity Date: 31.12.2024

Rediscount Calculation Date: 30.06.2024

Number of Days: 184 Days

Amount on the Check: 100,000 TL

Rediscount Rate: 50.75%

Rediscount Amount: 20,596.41 TL

Present Value: 79,403.59 TL

 

-Example of an Accounting Entry Dated 30 June 2024:

_______________ 30.06.2024 _______________

657 REDISCOUNT INTEREST EXPENSES 20,596.41 TL

122 NOTES RECEIVABLE REDISCOUNT 20,596.41 TL

_______________ 30.06.2024 _______________

-Reversal entry on 1 July 2024:

_______________ 01.07.2024 _______________

122 NOTES RECEIVABLE REDISCOUNT 20,596.41 TL

646 REDISCOUNT INTEREST INCOME 20,596.41 TL

_______________ 00.00.0000 _______________

 

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.

]]> https://www.muhasebenews.com/en/can-rediscount-be-applied-to-postdated-checks-in-turkiye-how-is-the-rediscount-calculated-and-what-is-an-example-of-an-accounting-entry/feed/ 0 Do I need to be a manufacturer to make free zone sales within Türkiye? https://www.muhasebenews.com/en/do-i-need-to-be-a-manufacturer-to-make-free-zone-sales-within-turkiye/ https://www.muhasebenews.com/en/do-i-need-to-be-a-manufacturer-to-make-free-zone-sales-within-turkiye/#respond Sat, 20 Jan 2024 20:30:52 +0000 https://www.muhasebenews.com/?p=148796 Do I have to be a manufacturer to be able to invoice the free zone in Türkiye? Can those who buy and sell also issue invoices? Do we need a capacity report to issue invoices?

There is no obligation to be a manufacturer. Any taxpayer can sell goods and services to the free zone from Türkiye.

In order to issue an export registered sales invoice, it is necessary to be a manufacturer and have a capacity report and industrial registry certificate.

 

 

Source:
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.

]]> https://www.muhasebenews.com/en/do-i-need-to-be-a-manufacturer-to-make-free-zone-sales-within-turkiye/feed/ 0 Are sales made from the Free Zone in Türkiye counted as exports? https://www.muhasebenews.com/en/are-sales-made-from-the-free-zone-in-turkiye-counted-as-exports/ https://www.muhasebenews.com/en/are-sales-made-from-the-free-zone-in-turkiye-counted-as-exports/#respond Sat, 20 Jan 2024 20:27:16 +0000 https://www.muhasebenews.com/?p=148794 Can we benefit from the deduction in Article 32/8 of the Corporate Tax Law for the profits obtained from the sales of goods abroad and subcontracting work from the Free Zone in Türkiye? Or should the export be made abroad?

32/8 of the Turkish Corporate Tax Law (KVK). The article is about manufacturers. KVK 32/7. KV in the article (related to Export) is paid with a 5% discount (20%). Sales in the free zone are subject to export.

 

 

Source:
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.

]]> https://www.muhasebenews.com/en/are-sales-made-from-the-free-zone-in-turkiye-counted-as-exports/feed/ 0