Muhasebe News

On what amount will depreciation be calculated in 2024/Q3 provisional tax?

MuhasebeNews — Mon, 21 Oct 2024 08:44:42 +0000

Those who make inflation adjustments in the 2024/2nd period provisional tax period will calculate their depreciation calculations dated 30.09.2024 based on the new value of the fixed assets dated 30.06.2024.

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 there be a 70% – 30% expense restriction on the expenses of light commercial vehicles that are registered as pickup trucks?

MuhasebeNews — Mon, 21 Oct 2024 08:43:24 +0000

Vehicles of different brands such as Doblo, Fiorino, Berlingo, Kangoo, Transit, Combo, with a passenger seat in the back are considered as passenger cars in terms of tax application even if they are listed as pickup trucks on the license. Therefore, they should be considered as passenger cars in their purchase, use and sale.

In general, vehicles are considered as passenger cars defined in Customs G.T.I.P. 87.03 position and are subject to expense restrictions, while they are considered as commercial vehicles in G.T.I.P. 87.04 position and all expenses are taken into account as expenses in determining the tax base.

How is VAT Withholding Applied to Cleaning, Environmental and Garden Maintenance Services in Türkiye?

MuhasebeNews — Mon, 21 Oct 2024 08:24:11 +0000

VAT LAW GENERAL APPLICATION NOTIFICATION
2.1.3.2.10. Cleaning, Environmental and Garden Maintenance Services
2.1.3.2.10.1. Buyers to Apply Withholding and Withholding Rate

In the purchases of cleaning, environmental and garden maintenance services specified in the section (I/C-2.1.3.1/a and b) of the Notification, VAT withholding at the rate of (9/10) is applied by the buyers.

2.1.3.2.10.2. Scope

Common services provided by the cleaning services sector;
– Building cleaning,
– Street cleaning,
– Hygienic cleaning of health institutions and collection and disposal of hospital waste,
– Garbage collection and disposal of collected garbage,
– Cleaning of parks and gardens and cemeteries,
– Pest control,
– Cleaning of railway and land transport vehicles,

and similar works are within the scope of withholding application.

Building cleaning includes cleaning of the interior and exterior of buildings, including their annexes and extensions, and cleaning of all kinds of furnishings (carpet, curtain, armchair, ornaments, etc.) inside or outside the building.

In addition, cleaning or washing of items such as towels, sheets, clothes, underwear is also subject to withholding within the scope of cleaning services.

However, withholding is not applied during the purchase of tools, equipment and consumables such as detergents and brooms to be used in cleaning works.

The services procured by those who are appointed as responsible for the maintenance, planting, irrigation, pest control, collection and rehabilitation of stray animals and similar services of parks, gardens and cemeteries, boulevards, median strips, recreational areas and pools are subject to withholding within the scope of environmental and garden maintenance services.

Source: VAT LAW GENERAL APPLICATION NOTIFICATION https://www.gib.gov.tr/fileadmin/mevzuatek/kdvgeneluygulamatebligi/kdvgeneluygulamatebligi_1c.pdf
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 those who work as CPAs in Türkiye become partners in an administrative company?

MuhasebeNews — Mon, 21 Oct 2024 08:21:34 +0000

Professionals can be partners in commercial companies. However, they cannot be in their management. Professionals can be partners in commercial companies without any ratio limit. However, they cannot be managers in the company.

Professionals who continue their professional activities as Income Taxpayers (CPAs) cannot work as dependents (dependents) under an employment contract, regardless of their title or position, under an employer.

A room in an office with the same entrance cannot be rented to a taxpayer who will engage in commercial activities. A taxpayer who engages in commercial activities with a CPA cannot operate in the same apartment or independent section, even if they are in a separate room.

However, a CPA can use the said place jointly with another CPA.

You can be partners in more than one commercial company as long as you are not a manager or authorized signatory.

You can provide services by making professional contracts with the companies you are partners with.

Source: Istanbul Chamber of Certified Public Accountants
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.

Are major repairs made in rented workplaces in Türkiye directly recorded as expenses?

MuhasebeNews — Thu, 17 Oct 2024 12:31:38 +0000

Extensive renovations other than minor repairs made in rented workplaces are tracked in the 264 SPECIAL COSTS account and are amortized in 5 years. If the lease period ends before 5 years or the workplace is moved, the remaining amount is directly recorded as expense or cost in the month of the move.

The entire VAT in the invoices related to comprehensive renovations made in rented workplaces is deducted in the VAT declaration in the month of the invoice.

SAMPLE ACCOUNTING RECORD

The company titled ABC DENİZCİLİK A.Ş. has made comprehensive renovations in the company building where it operates and an invoice of 1,000,000 TL VAT excluded was issued from ÇDE İNŞAAT LTD.ŞTİ. for the renovation.

____________________ / ____________________

264 SPECIAL COSTS 1,000,000 TL

191 VAT TO BE DEDUCTED 200,000 TL

329 OTHER TRADE DEBTS 1,200,000 TL

____________________ / ____________________

What is the minimum percentage of disability required to be considered disabled in Türkiye?

MuhasebeNews — Thu, 17 Oct 2024 11:51:46 +0000

What is disability discount?

Disability discount;

is the application of a discount determined according to the degrees they will enter, to the wages and/or earnings of those whose working capacity loss rate is at least 40% and above.

The rates that are the basis for the degrees they will enter according to the disability findings;

Those who have lost at least 80% of their working capacity;

are determined as first degree disabled,

those who have lost at least 60% are determined as second degree disabled,

those who have lost at least 40% are determined as third degree disabled.

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.

On what date will the accounting record of imported goods be made?

MuhasebeNews — Thu, 17 Oct 2024 11:49:45 +0000

The accounting record is made on the date of the customs entry declaration when the nationalization is completed.

____________________ / ____________________

159 GIVEN ORDER ADVANCES ACCOUNT

191 VAT TO BE DEDUCTED

320.SELLERS HS.

Sample record to be made while import procedures are ongoing

____________________ / ____________________

153 COMMERCIAL GOODS

159 GIVEN ORDER ADVANCES ACCOUNT

Sample record to be made when import procedures are completed

____________________ / ____________________

Before proceeding to customs procedures, it can be followed in the goods in transit account based on the supplier’s invoice.

____________________ / ____________________

157 OTHER STOCK

320 SELLERS

Imported Goods in Transit

____________________ / ____________________

How much of the meal money is exempt from tax and how much from the SSI premium in Türkiye?

MuhasebeNews — Thu, 17 Oct 2024 11:48:16 +0000

How much of the daily cash meal allowance for 2024 is exempt from SSI premiums?

Employers are exempt from SGK premiums for the portion of travel and meal allowances paid to employees up to 23.65% of the daily gross minimum wage.

THE DAILY MEAL ALLOWANCE EXEMPTION FOR 2024 IS 170 TL + 10% VAT.

(The daily meal allowance exempt from income tax on the payroll for 2024, as announced in the Official Gazette dated December 30, 2023, numbered 32415, regarding the 193-GVK Notification, has been increased from 110 TL + VAT for 2023 to 170 TL + 10% = 187 TL for 2024.)

A) INCOME AND STAMP TAX EXEMPTION

With Law No. 7420, effective from December 1, 2022, the benefits provided in the form of cash meal allowances to employees when meals are not provided at the workplace or its premises have also been included in the exemption scope.

To be exempt from income tax on cash meal allowances paid to employees:

a) Meals are not provided by employers at the workplace or its premises,

b) The daily meal allowance does not exceed 170 TL + 10% VAT,

c) It relates to the actual days worked.

THE DETERMINED DAILY MEAL ALLOWANCE IS EXEMPT FROM INCOME TAX.

For example, a meal allowance payment of (170 TL x 21 days =) 3,570 TL for an employee who works 21 days will be entirely exempt from income tax.

However, if the meal allowance payment is 200 TL, then (200 TL x 21 days) the meal allowance of 4,200 TL will have 3,570 TL + VAT exempt from income tax, and the remaining 4,200 TL – 3,570 TL = 630 TL will be subject to income tax.

On the other hand, the total amount of meal allowances given to employees in cash by employers must be shown on the payroll, regardless of whether it is within the exemption scope. Payments for meal allowances under exemption will not be included in the tax base.

THE DETERMINED DAILY MEAL ALLOWANCE IS EXEMPT FROM STAMP TAX.

Additionally, the portion of the payments made by employers to employees, as stated in the documents, is also exempt from stamp tax.

B) THE LIMIT OF DAILY SGK EXEMPTION FOR MEAL ALLOWANCES IS DIFFERENT.

It should be noted that after the exemption introduced by Law No. 7420, the “Regulation on Amendment of Social Insurance Transactions” was published in the Official Gazette dated November 11, 2022. Following that, the SGK General Letter dated November 23, 2022, numbered 2022/20, announced that all payments made to insured persons or to third parties on behalf of insured persons under the name of meal allowances will be exempt from the base earnings of the daily gross minimum wage at the rate of 23.65%.

Accordingly, between January 1, 2024, and December 31, 2024, the amount of meal allowance exempt from the base earnings of insured persons under 4/1-(a) will be:

666.75 TL (daily minimum wage) x 23.65% = 157.69 TL (Daily). SGK premiums will be calculated over 170 TL – 157.69 TL = 12.31 TL.

C) Exemption Application in Benefits Provided to Employees through Meals

In benefits provided to employees without cash payments for meals:

a) The benefits provided to employees by employers at the workplace or its premises are not limited to any amount.

b) When meals purchased from suppliers providing ready-made meal services are given to employees at the workplace or its premises, the benefits are not limited to any amount.

c) In cases where meals are not provided at the workplace or its premises and services are provided by businesses offering meal services, the payments made to these businesses for each employee for days worked not exceeding 170 Turkish Liras for a daily meal allowance.

ç) In cases where meals are not provided at the workplace or its premises and the meal service is provided by loading onto meal cards or purchasing meal vouchers from businesses providing meal card and/or meal voucher services, the portion of the daily meal allowance for each employee for days worked not exceeding 170 Turkish Liras.

These are exempt from income tax.

Explanations regarding the implementation of these exemptions are provided in the Income Tax General Notification (Series No: 186) published in the Official Gazette dated July 26, 1995, numbered 22355.

Can a person practicing a profession other than a CPA operate in a CPA office in Türkiye?

MuhasebeNews — Thu, 17 Oct 2024 11:45:39 +0000

No, this is not possible due to professional legislation. It is not possible for lawyers, doctors, architects, engineers, consultants, software developers, customs consultants and other similar professional professionals to operate from the same office with CPAs who have a CPA license and operate as freelancers.

More than one CPA License holder may use the same office.

Regulation on Working Principles and Procedures of Certified Public Accountants and Sworn-in Certified Public Accountants

Obligation to Have an Office

Article 14 – (Amended: R.G-21/11/2007-26707)

Each professional must open a workplace in the chamber information they are affiliated with before starting their professional activities.

Office standards and related procedures and principles are determined by the General Assembly of the Union. The workplaces opened are independent offices and cannot be intertwined with another freelance activity or business. Professional activities cannot be carried out in residences that are also used as homes. A professional cannot have more than one office. Professionals who work together cannot have separate offices.

Can businesses in Türkiye that made a profit before the 2023 inflation adjustment but turned into losses after the adjustment make profit distributions?

MuhasebeNews — Thu, 17 Oct 2024 11:25:52 +0000

The situation that will occur after inflation adjustment will be taken into account in the distribution of profit.

Example:

2023 Profit before inflation adjustment: 10 Million TL

2023 Profit after inflation adjustment: 5 Million TL

Distributable profit for 2023: 5 Million TL