abroad – Muhasebe News

When we transfer the revenue obtained from our companies abroad to Turkey, how do our partners or company tax this revenue?

MuhasebeNews — Thu, 16 Jan 2020 11:00:06 +0000

When we transfer the revenue obtained from our companies abroad to Turkey, how do our partners or company tax this revenue?

What will be the profit taxation rate, when the revenue obtained from our company located in the UK, and the relevant amount is transferred to the accounts of the company or person in Turkey?

The tax is calculated by combining with incomes in Turkey for the revenues and incomes obtained from companies or entities in Turkey. Taxes paid abroad, if any, are deducted from the calculated taxes. 15% income tax withholding is applied in profit distribution.

Source: İSMMMO
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.

Do we have to pay the allowances to the staff from the bank?

MuhasebeNews — Tue, 02 Jul 2019 15:09:13 +0000

Do we have to pay the allowances to the staff from the bank?

Our company wants to pay an allowance for food and accommodation expenses of our staff who are sent abroad by duty. Since it is difficult to use a bank account abroad, we want to pay our staff in cash if possible. We kindly request your opinion on the matter.

Allowances are recognized as salaries. They must be paid through the bank. The employees open a currency account in Turkey and the allowances are deposited to those accounts. Employees withdraw the money from the bank and spend it via credit card.

Are we supposed to declare in the income tax return the earnings from wages given by the employers abroad?

MuhasebeNews — Tue, 12 Mar 2019 11:38:13 +0000

Are the wages of employees who work in the contact office of a foreign company in Turkey subject to income tax deduction?

Wages from foreign employers are declared in the income tax return to the tax authority by the employee.

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 can we benefit from lump sum discount for our clean expenses of construction works abroad?

MuhasebeNews — Fri, 11 Jan 2019 12:00:38 +0000

Our company is doing construction and repair works through a domestic company. We have various clean expenses of our construction work abroad. Is it possible to make a discount on these expenses?
If so, at what rate and how can we write expenses?

Deductible Expenses – Income Tax Law Article 40

It is accepted that the expenses below are deducted so as to determine the net profit.

1.General expenses that are made to earn and maintain business income;

(taxpayers who perform export and construction, repair, installation, transportation jobs abroad may, in addition to the expenses referred in this paragraph and providing that they do not exceed one fifth of the income made in dollars from these jobs, deduct the expenses they calculated as lump sum in return to their expenses related to the jobs above.

Is it more profitable to draw up an invoice in Turkey for an engineering work we will do abroad?

MuhasebeNews — Mon, 24 Dec 2018 18:00:37 +0000

There is a plan and a project work for our Traffic Engineering business in Uzbekistan (for about $5-6 million).

We will take a group of 15 people abroad for this work, service export. Should we carry out our activities regarding this work in our company in Turkey or should we establish a new company there?

Are there any tax advantages? How can we excise our income? Would there be any benefits if we took our employees through İŞKUR?

(24.12.2018 08:58)

Please get information from the Uzbekistan Consulate for the taxation system in Uzbekistan. Compare it with Turkish Taxation System. Earnings from abroad are declared in Turkey. If there are taxes paid in the related country, they are set off.

Build in Abroad, Do Not Pay Tax!

MuhasebeNews — Wed, 14 Nov 2018 09:00:20 +0000

Build in Abroad, Do Not Pay Tax!

1- THE ONE WHO BUILD IN ABROAD, WILL NOT POY TAX!
Yes. You did read right. The ones who build and repair in abroad will not pay tax even for a Turkish Lira.

2- WHAT IS THE LEGAL FOUNDATION FOR IT?
First of all, we have to declare the general rule of paying tax for the institutions totally liable to tax.

“ In the corporate tax law,

“According to the Corporate Tax Law 5520, article number 3; “The ones whose work center is located in Turkey, are liable to paying tax “provision is included in the law.

HOWEVER; in the same law, there is an exclusionary part in which states the rule in the 5^th part that the incomes attained by the construction, restoration and montage in abroad and forwarded to the account in Turkey, are not liable to tax.

In the 5.9 part of Corporate Tax Law, entitled “exclusion of the income taxes in which attained by construction, restoration and montage and technical services” ;

“According to the Corporate Law, article number 5, incomes provided by construction, restoration and montage in abroad and forwarded to the accounts in Turkey, are not liable to tax.”

3- YOU DON’T HAVE TO BRING YOUR EARNINGS TO TURKEY!
In the scope of the practice of this exclusion;

Earnings attained by technical services

-Construction,
–Restoration and
–Montage
are not necessarily brought to Turkey.

Transferring of Mentioned incomes in Turkey is enough in order to benefit from the exclusion.

4- IN INCOME TABLE, (PROFIT AND LOSS TABLE) IT WILL BE SEEN AS PROFIT.

Earnings attained out of exclusion scope will be seen as profit in company’s profit and loss table with other transactions of the company and while tax declaration is being issued, it will be deducted out of the tax.

In that way, while your company’s credibility is evaluated by the finance and loan rating agencies, your foreign profit will affect your situation positively.

____________________________________________________

Source: Taxation
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 Discount is made in the businesses providing service with foreign countries

MuhasebeNews — Tue, 15 May 2018 14:58:17 +0000

How Discount is made in the businesses providing service with foreign countries?

1- HOW DISCOUNT MADE IN THE BUSINESS PROVIDING SERVICE WITH FOREIGN COUNTRIES IS CALCULATED?
Except for the support stuff of employers providing services with foreign countries within the context of Income Tax Law no.89 and the 10^th article of Corporate tax law no.5520 published on 13^th June of 2006, discount is entered in an account from
1.1- From employees especially employed for this transactions,
1,2- From the tax calculated over subsistence allowance application,
1.3– In case that employer collects %85 of his revenue from foreign countries,
1.4- On the condition that invoice or similar documents is issued on behalf of the customer in foreign country,

For every employee, minimum wage’s amount is multiplied with the rate of first tax band in the article 103 of Income Tax Law.

2-HOW DISCOUT IS MADE?
Discount is made;
2.1- If the above mentioned statements are met.
2.2- Annual Revenue is calculate over;
2.3- taxation period of the Corporate tax law.

Source:Income Tax Law
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.

Those who attain services From Abroad Be Careful about Value Added Tax Number 2!!!

MuhasebeNews — Tue, 13 Feb 2018 10:40:35 +0000

1- Those who attain services from abroad need to be careful about value added tax number 2!

If those who are not responsible for paying tax in Turkey are attaining services from abroad and benefiting from it, have to pay value-added tax. (Tax Declaration Number 2)

2- Vat Return Number 2 contains Purchased Software, too
Let us explain with an exemplum; Let say Özkan AKIN A.Ş located in Turkey purchased a software program from a company located in abroad and downloaded the program. The foreign company sent the bill via email. Bill cost is 1.000 Turkish Lira. (260 USD)
Özkan AKIN A.Ş is supposed to pay 180 Turkish Lira Value Added Tax with the proclamation of Tax Declaration Number 2.
Özkan AKIN A.Ş will demand a discount in the tax declaration number 1.
In a nutshell, the company has to pay it cash, and after that, they will get the discount they demand in the regular tax.

3- Attention is asked for the situation in which service is benefited in domestic.
In contrast to what mentioned above, If a company İn Turkey does not use the service purchased from abroad, it does not have to declare and pay value added tax with the proclamation of Tax Declaration Number 2.

Exemplum: Özkan AKIN A.Ş. purchased the service of finding a customer in abroad from a brokerage firm in Slovenia, after that service, it paid 50.000 EURO. Thanks to this brokerage, there has been a 500.000 EURO import to Australia.

The company attained brokerage service does not have to pay value-added tax.

4- IN WHICH CIRCUMSTANCE THE COMPANY HAS TO PAY VALUE ADDED TAX?In the case of operations are being done in Turkey.
Commodities are in Turkey in the process of purchasing means services are being taken and benefited in Turkey.
If services are benefited in abroad, one does not have to pay value-added tax.

Source: Article Number 3065 Value Added Tax

Can You Apply For A Work Permit Within The Country For A Foreigner With A Tourist Visa in Turkey?

MuhasebeNews — Thu, 21 Sep 2017 11:00:55 +0000

Can You Apply For A Work Permit Within The Country For A Foreigner With A Tourist Visa in Turkey?

You can’t apply for a work permit domestically for foreigners who are visiting Turkey with a tourist visa.

Except for those given for associate degree and bachelor’s degrees, only foreigners with a residence permit that have a validity of at least six months and haven’t exceeded their time limit can apply domestically.

Source: 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.