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Do I need to be a manufacturer to make free zone sales within Türkiye?

MuhasebeNews — Sat, 20 Jan 2024 20:30:52 +0000

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.

Can the bar association fees of the lawyers on the payroll of a self-employed lawyer be written off as expense?

MuhasebeNews — Sat, 20 Jan 2024 06:18:27 +0000

Can the bar association fees paid by lawyers for the lawyers they employ be written off as expenses?

It cannot be written.

Can there be deductions from the worker’s wage for the losses?

MuhasebeNews — Mon, 08 Apr 2019 12:26:34 +0000

SUBJECT

About cutting back on the worker’s wage due to loss.

QUESTION
…
There are construction contract works we do as a subcontractor.
We employ a lot of workers in sites.
There are a lot of entrances to and exits from the site.
There are workers we employ in these sites according to score method.
We make a lot of expenses when emloying these workers, such as medical examination, uniform etc.
These people don’t come to work 1-2 days after the start date of employment.
The expenses we make for these people return to us as losses.
We want to cut back on that person’s wage for the expenses we make.
How should we proceed in order to not have any difficulties in terms of both the personnel and SSI (Social Security Institution)
…
(13.11.2018 15:19)

ANSWER
There can be deductions from the equipment, uniforms etc. that are given to the worker only for the losses.

Source: Ismmmo
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.

Coca Cola bottle to be sold for over $150k

MuhasebeNews — Fri, 05 Apr 2019 13:00:18 +0000

Coca Cola’s iconic bottle will be up for bid in Morphy Auction this month.

The 104-year-old bottle is expected to enter the auction at $150,000.

Coca Cola’s deposit bottle was introduced in 1917 in the U.S. It is the first commercial good to have appeared on Times Magazine, in 1950. The bottle became the iconic figüre of Coca Cola, being featured in the artworks of Andy Warhol and Salvador Dali.

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.

What are the deductions to be made from the income included in the annual tax declaration?

MuhasebeNews — Wed, 27 Mar 2019 11:30:02 +0000

Deductions with respect to income to be declared by an annual tax declaration are specified in Income Tax Law and in other relevant laws. In order to make the following deductions from the income to be declared in income tax declaration while income tax base is being determined, there must be an income to be declared in an annual tax return and deductions to be made should satisfy the requirements specified in the relevant legislation.

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.

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

MuhasebeNews — Wed, 20 Mar 2019 12:43:06 +0000

Deduction of Expenses in the Actual Expenses Method

Taxpayers who have opted for the lump sum method can, after deducting the amount of exception from their rental income, set off the lump sum expenses at 15% of the remaining amount against actual expenses.

It is not possible to opt for lump sum expenses method in the case of leasing rights. For instance, taxpayers, who gain office rental income and income from leasing rights, should choose actual expenses method since they should declare rental income from leasing rights at their tax return.

Taxpayers who have chosen the lump sum expenses method cannot choose actual expenses method before two years have elapsed.

Lump sum expenses rate is determined at 15% of the revenue to be applied to rental income from 1/1/2017.

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

MuhasebeNews — Tue, 19 Mar 2019 08:00:06 +0000

In the taxation of rental income, the net amount of the income obtained is determined in two different ways as follows:

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.

Google will be detecting radars

MuhasebeNews — Mon, 21 Jan 2019 11:45:34 +0000

Google Maps added a new feature that allows you to see where radars are placed on your route.

Through audio warning system, drivers see the upcoming radars without the risk of a car crash.

The feature is only available for some mobiles and areas for now.

Theresa May won’t be attending Davos

MuhasebeNews — Fri, 18 Jan 2019 06:00:46 +0000

UK President There May won’t be attending World Economic Forum Summit in Switzerland this year.

May will hold calls from EU leaders throughout next week and focus on Brexit.

On Tuesday, UK Parliement rejected to come to terms on Brexit decision.

If UK leaves EU on 29th of March without making an agreement, it will have difficulties in various areas.

How many days after the service should an invoice be issued?

MuhasebeNews — Wed, 05 Dec 2018 10:00:34 +0000

I’ve been managing an office since 2012 as an INDEPENDENT BUSINESS. As you know, RECEIPT BASIS is valid for self-employment, so I’m writing self- employment receipts when I get my payments. But I’m thinking of turning into a Limited Company soon. In this case, am I required to draw up an invoice within 7 days for the payments that are not made? Or is it still okay if I invoice them when the payment is made? If I’m required to do so now, I have to pay tax for the payments I haven’t received…

As you know for commercial earnings, tax occurs through Accrual.

In accordance with Tax Procedure Law Article 231/5, Service bill is issued within 7 days. (7 days are calculated according to date specified for the receipt in the contract.)

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.