• The termination of the employment contract by the employer for reasons other than those related to the employee’s misconduct or immoral behavior,
• The termination of the employment contract by the employee due to health issues, misconduct or immoral behavior by the employer, or similar reasons such as the cessation of work at the workplace,
• Leaving the job due to military service,
• Retirement or leaving the job after fulfilling the required insurance period and number of premium days for retirement (excluding the age requirement),
• The resignation of a female employee within 1 year of her marriage,
• The death of the employee.

If any of these conditions are met, severance pay must be paid.

Source: T.C. The 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.

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.

The Labor Law numbered 1475 that regulates the employee-employer relationship was amended and took effect in 2003 within the framework of harmonization with the EU acquis and the agreements of International Labor Organization (ILO) and according to the economical and technological developments and the arousal of new employment relationships.

The Law aims to create new employment opportunities and appropriate working conditions for employers based on the necessities of our time through preparing new employment models which bring flexibility to the working hours.

In accordance with Law, the employment models in Turkey are as follows:

1- Employment for a definite term
2- Part-time employment
3- On-call work
4- Temporary employment relationship

Source: YOİK
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.

Law numbered 4817 includes foreigners working dependently or independently in Turkey, foreigners taking vocational education from an employer and real and legal persons employing foreigners.

In accordance with the Law, the following persons are excluded;

• People who were born in Turkey but renounced their citizenship with the decision of Council of Ministers,
• Correspondents to be employed according to Press Law,
• Members of foreign media organs,
• Work permit holders or people that are employed by ministries or state institutions or organizations according to law,
• Foreigners that are exempt from work permit by way of considering the principle of reciprocity, international law and European Union Law.

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.

There are 3 types of work permits.

1- Temporary Work Permit

Unless otherwise provided in the bilateral and multilateral agreements that Turkey is a party of, the work permit is provided for a year at most depending on the situation of the labor market, developments in the business life, the sectorial and cyclical changes regarding employment, the period of the residence permit and employment contract of the foreigner.

After a year, this period may be extended up to 3 years upon request on condition that the employment is in the same profession and employer. Following the completion of the 3-year period, it may be extended up to 6 years on condition that the employment is in the same profession (the employer may be different this time.)

2- Permanent Work Permit

Permanent work permits, unless otherwise stipulated by bilateral or multilateral agreements, are granted to foreigners who have been in Turkey as legal residents for at least eight years without interruption and as worker for at least six years, without considering the situation of the labor market, developments in the business life and being limited to a specific business, profession, landed property or a geographical area.

3- Independent Work Permit

Foreigners to work independently are given work permit on condition that they have been legal workers and residing in Turkey without interruption for 5 years.

Work permits in exceptional situations; Unless otherwise provided in the bilateral and multilateral agreements that Turkey is a party of, the foreigners listed in Article 8 of Law numbered 4817 are given work permit without being subject to the periods stated in the Law.

Source: Yoik
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.

It is possible to categorize the Turkish taxation system as follows;

I-    Income taxes

• Individual Income Tax
• Corporate Income Tax

II-   Taxes on Expenditure

• Value Added Tax
• Special Consumption Tax
• Banking and Insurance Transaction Tax

III-  Taxes on Wealth

• Property Tax
• Inheritance and Gift Tax
• Motor Vehicles Tax

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.

Accordingly, following items may be subject to deduction:

1.Life/Individual Insurance Premiums

The 15% of life/individual insurance premiums paid, can be deducted for determining the tax base in the annual tax returns.

The revenue that is declared at the annual tax return before the other deductions and the revenue loss of former years are deducted would be taken as the base revenue to calculate the amount that would be deducted.

The premiums that should be taken into account for determining the tax base are as follows:

• 50% of life insurance payments of the taxpayers’, their spouses and children,
• 100% of death, accident, health, disability, maternity, child birth and education individual insurance premiums.

The total amount that would be deducted cannot exceed the 15% of total revenue and annual amount of minimum wage. (The gross annual minimum wage for 2018 is 24.354 TL).

2. Education and Health Care Expenses

The education and health care expenses done as stated below would be deducted from the annual revenue declared in tax return in condition not to exceed the 10% of total revenue:

• The education and health care expenses should be done in Turkey.
• The expenses should be verified by the documents taken from the individual or legal personalities who are personal or corporate income taxpayers.
• The expenses should be regarding the taxpayers’ oneself or their spouse and children underage.

3. Donations and Aids
3.1. Limited Deductions

Personal income taxpayers, General and private budgeted public administrations, provincial administrations, municipalities, villages and non-profit associations and the foundations that are exempted from tax by the President of Republic, can deduct the donations and aids againstreceipt from their annual income in condition that it would not exceed the 5% of total income. (It would not exceed 10% of total income if donations are made to the stated organizations, associations and foundations in the development priority zone).

3.2. Non-limited Deductions

a) The donated schools, health institutions, the student dormitories and day care centers which have bed capacity not less than 100 (in development priority zones not less than 50), orphanages, rest houses, care and rehabilitation centers to the General and private budgeted public administrations, provincial administrations, municipalities, villages and all expenses for the construction of the place of worship constructed by the permission of authorized public administrative director, the institutions where the religious education is given under inspection of Directorate of Religious Affairs, youth centers and youth and scouting camps belong to the Youth and Sports Ministry or all donations and aids in kind or in cash made for the construction or for the maintenance of their activities of these establishments can be deducted.

b) The total cost of food, cleaning supplies, clothing and heating donated to the foundations and associations established as food banks for helping poor people in line with the procedures an principles determined by the Ministry of Finance can be deducted.

c) General and private budgeted public administrations, provincial administrations, municipalities, villages, non-profit associations, the foundations that are exempted from tax by the President of Republic, the expenses done by institutions which makes scientific research or the expenses for the studies that are supported by Ministry of Culture and Tourism and all donations and aids made for these purposes can be deducted.

d) The total amount of the donations and aids in kind or in cash against receipt to the aid campaigns initiated the President of Republic.

e) The total amount of the donations and aids in cash against receipt to Turkish Association of Crescent and Turkish Green Crescent Society except their commercial enterprises can be deducted.

f) The total amount of the donations and aids in kind and in cash and the sponsorship expenses to the EXPO 2016 Antalya Agency can be deducted.

4. Sponsorship Expenses

According to The Income Tax Law Article (89/8) the sponsorship expenses done can be deducted from the income declared at annual tax return as follows:

• 100% of expenses for amateur sports,
• 50% of expenses for professional sports.

5. Donations and aids which are completely deductible in accordance with other laws.

The total amount of the donations and aids in kind or in cash according to:

• The Improvement of Social Aid and Solidarity Law,
• Law on the Establishment of Turkish Scientific and Technical Research Institution,
• Law on Social Services and Child Protection Agency,
• Atatürk High Institution of Culture, Language and History Law,
• Turkish Armed Forces Foundation Law,
• National Afforestation and Erosion Control Mobilization Law,
• Primary Education Law

and related other law can be deducted.

Source: gib.gov.tr
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.

SIMILAR CONTENTS

Are we required to declare rental income?

What is the tax withholding legislation for rental payments?

Expenses To Be Deducted When Determining The Rental Income? -Actual Expenses Method

What is considered as loss when determining the gross income from immoveable property?

What Are The Expenses To Be Deducted When Determining The Rental Income? -Lump Sum Expenses Method

Taxpayers who have only rental income from immovable property in Turkey will submit annual tax declaration, if;

• their rental income from house exceeds tax exception amount (4.400 TL for the year 2018); and,
• their rental income not subject to withholding obtain from leasing of the properties and rights within a calendar year

On the other hand, rental income which is subject to withholding will not be declared the annual tax return regardless the amount.

Every member of a family has to submit a declaration on their own behalf for the rental income they obtained from the property and rights belonging to them.

On the occasion that minor and restricted persons are taxpayers; the annual declaration to be submitted on behalf of them is signed by their parents, guardians or curators.

In case of having property and rights with shares, every partner should declare the rental income corresponding to his/her own shares.

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.

SIMILAR CONTENTS

What is the basis for low or no value for rental income?

What are the property and rights that are subjects of rental income?

How to obtain the rental income?

What Are The Expenses To Be Deducted When Determining The Rental Income? -Lump Sum Expenses Method

Expenses To Be Deducted When Determining The Rental Income? -Actual Expenses Method

• Actual expenses method
• Lump sum expenses method (for other than those who lease rights)

The selection of the actual expenses or lump sum method should cover all immovable property, which means that it is not possible to choose the actual expenses method for some part and the lump sum expenses method for the remaining part.

 Deduction of Expenses in the Lump Sum Expenses Method

If the actual expenses method is chosen, following actual expenses can be deducted from the gross amount of rental income:

• Lighting, heating, water and elevator expenses paid by lessor for rented property,
• Management costs which are measured according to the importance of property and related with the administration of the rented property,
• Insurance expenses relating to the rented property and rights,
• Interest of debts relating to the rented property and rights,
• 5% of acquisition value of one rented house for 5 years beginning from the date of acquisition (This deduction applies only to rental income of the rented house; non-deductible part is not evaluated as expenditure surplus. This deduction is not valid for houses acquired before 2014), Deduction of 5% of the acquisition value applies only to one real property rented as house.
  For real properties rented as workplace, such expense deduction is not applicable.
• Taxes, duties and fees paid for the rented property and rights and rates paid to municipalities for expenses by lessor,
• Depreciation setting aside for rented property and rights, and heat insulation and energy saving expenditures which are made by the lessor and that increase the economic value of the real estate. (These expenditures can be considered as cost if it exceeds 1000 TL for the year 2018.)
• Repair and maintenance expenses incurred by lessor for the rented property,
• Rents and other actual expenses paid by sub-lessors, Rent of the house accommodated by the lessors who rent their own property, (non-deductible part is not evaluated as expenditure surplus), It is not allowed for taxpayers not residing in Turkey, (including Turkish nationals who reside abroad more than a continuous period of six months with residence or work permit) to deduct the amount of rents they pay in a foreign country from their rental income obtained in Turkey.
• Cost of loss, detriments and compensations paid for rented property and rights based on a contract, law or court decree.

 Calculation of deductible expenses in case of exception in actual expenses method

Where a taxpayer chooses the actual expenses method and benefits from the exception applied to rental income from house, the amount of actual expenses corresponding to exception is not deductible from gross revenue.

The deductible amount is calculated as follows:

Deductible expenses = Total Expenses x Taxable Revenue
                                                Total Value

(*) Taxable Revenue = Total Revenue – Exception for Rental Income from House

Example: Taxpayer (C) rented her house in 2018 and obtained 38.000 TL of rental income. Taxpayer, who has no any other income, incurred 9.500 TL of expenditure for his property and choses the actual expenses method.

The amount that taxpayer can deduct as actual expenses will be the amount that corresponds to the taxable revenue of the total expense for 9.500 TL.

Source: gib.gov.tr
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.

SIMILAR CONTENTS

What is the basis for low or no value for rental income?

What are the property and rights that are subjects of rental income?

How to obtain the rental income?

What are the exceptions for rental income?

Example: Taxpayer (B) rented his house from 360 TL per month and obtained 4.320 TL annually in 2018. In this case, rental income from house less than the exemption amount of 4.400 TL is not to be declared by the taxpayer.

In the case the rental income is not declared between the dates in time or the rental income is understated, it will not be possible to benefit from the exception amount of 4.400 TL for the year 2018.

However, those who submit declarations, before any determination is made by the administration, on their own accord for their rental income which they did not declare or include in their declarations on time, will benefit from the related exception.

If the rental income from house exceeds the amount determined for exception, the amount of exception should be deducted from rental income to be declared in the annual tax declaration.

The exception applies only to rental income from properties that have been rented as house. Taxpayers whose rental income from house under 4.400 TL in 2018  do not file a tax declaration for these incomes.

For instance, if there is a rental income obtained and declared at the same time both from house and workplace, the exception applies only to the rental income obtained from house, not to the rental income from workplace.

Persons, who have to declare their income from business, agriculture or professional   activities, are not eligible to benefit from 4.400 TL of exception. Besides, persons who gain rental income equal to or above 4.400 TL, of whose gross total of their income including wage, capital investment income, rental income and other incomes exceeding the amount 120.000 TL for the year 2018 jointly or severally, cannot benefit from exception.

In case more than one person has the ownership of a house, the taxation of the rental income obtained from such house will be subject to 4.400 TL (for the year 2018) of exception separately for each proprietor.

Thus, if the inheritance is not shared, every inheritor will benefit from the exception separately.

In case one taxpayer obtains rental income from more than one house, the exception will be applied at once to the total amount of rental income.

Kaynak: gib.gov.tr
Yasal Uyarı: Bu içerikte yer alan bilgi, görsel, tablolar, açıklama, yorum, analiz ve bir bütün olarak içeriğin tamamı sadece genel bilgilendirme amacıyla verilmiştir. Kişi veya kuruma özel profesyonel bir bilgilendirme ve yönlendirmede bulunma amacı güdülmemiştir. Konu ile benzerlik gösterse de her işletmenin kendi özel şartları nedeniyle farklı durumları olabilir. Bu nedenle, bu yazıda belirtilen içerikte yola çıkarak işletmenizi etkileyecek herhangi bir karar alıp uygulamaya geçmeden önce, uzmanına danışmanız menfaatiniz gereğidir. Muhasebenews veya ilişkili olduğu kişi veya kurumlardan hiç biri, bu belgede yer alan bilgi, tablo, görsel, görüş ve diğer türdeki tüm içeriklerin özel veya resmi, gerçek veya tüzel kişi, kurum ve organizasyonlar tarafından kullanılması sonucunda ortaya çıkabilecek zarar veya ziyandan sorumlu değildir.

SIMILAR CONTENTS

What is the basis for low or no value for rental income?

What are the property and rights that are subjects of rental income?

How to obtain the rental income?