discount – Muhasebe News

Can incentives and discounts not used within the scope of investment incentives be used later, in Turkey?

MuhasebeNews — Mon, 28 Oct 2019 13:00:18 +0000

Can incentives and discounts not used within the scope of investment incentives be used later, in Turkey?

Within the scope of Articles 23 and 23A of the Decision No. 2012/3305 on Subsidies in Investments, in the transfer of the current investment from Region 4 to Region 1 (after the region change and 5 years have expired):

1- Can investment incentives rate and incentives of discounted corporate tax rate, which are not used in the investment incentive region, be used?

2-What will be the 5-year incentive previously used by the Insurance Premium employer support due to region change and will employer benefit from premium support in the 6th year?

Change of Investment Region

(1) Application of the demand for region change related to investments with incentive certificate is made to the relevant authority which evaluates the applications. Demands for such change are finalized due to regional and sectoral restrictions.

(2) In addition to the existing investments, the demands for changes in the scope of the incentive certificate are evaluated according to their provisions.

(3) Applications made to the relevant chambers are finalized by taking the opinion of the Undersecretariat.

(4) The subsidy elements applied to expenditures that cannot be transferred instead of new investments are withdrawn from the investor within the framework of the relevant legislation, from the investments made with the excess of these subsidy elements, if the subsidy used for the investments made before the change of investment region is more than the subsidy elements in the new investment region.

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.

Can we discount private health insurance premiums for the previous months in the next month? (In Turkey)

MuhasebeNews — Mon, 23 Sep 2019 10:00:36 +0000

Can we discount private health insurance premiums for the previous months in the next month? (In Turkey)

Can we discount the payment receipts of private health insurance premium of previous months in the current month?

You can make a discount by the end of 2019.

Please consider conditions and the limit stated in Article 63/3 of Income Tax Law for the discount.

Do we get any discount or incentive, if we employ foreign personnel in Turkey?

MuhasebeNews — Thu, 12 Sep 2019 07:45:46 +0000

Is there any discount or incentive to employ a foreign employee in Turkey?

Foreign or not, everyone is 4/a workers. Therefore, there is not any other implementation on incentive rates applied to Turkish citizens.

Is it possible to apply a discount on VAT of bad debts?

MuhasebeNews — Wed, 10 Apr 2019 15:30:36 +0000

In accordance with Law numbered 7104 and the amendment on Article 29 of Law numbered 3065, the VAT of bad debts may be subject to a discount. The company lawyer started an execution proceeding on 31.12.2018 for the receivables to not get affected by the increase in transaction stamp costs. Normally, the execution proceeding was set to start in January.

We’ve just received the documents. According to the related article of the Law, the VAT may be subject to a discount in the taxation period that it is written as a loss and this discount may be written as income. Is it possible to make provisions in January and apply a discount on the VAT?

Provisions shall be made until 31.12.2018. It is possible to apply a discount on the VAT until 31.12.2019 (Paragraph 3 of Article 29 of VAT Law.)

For how many years can we benefit from the discount resulting from the cash capital increase?

MuhasebeNews — Fri, 01 Mar 2019 14:26:10 +0000

For how many years can we benefit from the corporate tax discount resulting from the cash capital increase?

Companies can benefit from the discount resulting from their cash capital increase in addition to their existing capitals, on condition that they do not decrease their capital. There is no time limit to benefit from the discount.

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.

Is it possible to apply discount on the VAT of bad debts?

MuhasebeNews — Mon, 28 Jan 2019 15:00:35 +0000

We’ve just received the documents. According to the related article of the Law, a discount may be applied on the VAT in the taxation period that it is written as a loss and this discount may be written as income. Is it possible to make provisions in January and apply a discount on the VAT?

Provisions shall be made until 31.12.2018. It is possible to apply a discount on the VAT until 31.12.2019 (Paragraph 3 of Article 29 of VAT Law.)

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.

How Much of Donations and Charities Can Be Deducted From Tax?

MuhasebeNews — Sat, 13 Oct 2018 07:00:45 +0000

Donations and Charities that can be deducted from tax providing that they are stated in Corporate Tax Return;

– 5 % of the net profit of the company donated against a receipt to general and special budgeted public administrations, provincial special administrations, municipalities, villages, foundations exempted from tax by Council of Ministers, nonprofit voluntary organizations, state institutions and organizations that carry out scientific research and development.

– All donations and charities in kind and in cash granted in order to construct or cover the expenses of general and special budgeted public administrations, provincial special administrations, school and health facility donated to municipalities and villages, dormitory whose bed space should not be less than 100 (bed space should be 50 in priority regions for development) and nursery school, orphanage, eventide home, nursing and rehabilitation center, sanctuaries that will be subject to local authority’s permission and supervision, facilities that provide religious education under the control of Religious Affairs Administration, youth centers and scout camp belonging to the Ministry of Youth and Sports.

– 100 % of donations and charities granted against a receipt and the expenses supported by the Ministry of Culture and Tourism done by general and special budgeted public administrations, provincial special administrations, municipalities and villages, foundations exempted from tax by Council of Ministers, nonprofit voluntary organizations and organizations that carry out scientific research and development and the expenses supported by the Ministry of Culture and Tourism.

– All donations and charities in kind and in cash done against a receipt for aid campaigns launched by the Prime Ministry and Council of Ministers.

– All donations and charities in kind and in cash granted against a receipt for Turkish Red Crescent and Turkish Green Crescent Society, except their commercial enterprises.

Date: 8 February 2017

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 Delayed Payments Subject to Discount?

MuhasebeNews — Thu, 16 Aug 2018 13:00:32 +0000

1- ARE UNPAID PREMIUMS SUBJECT TO DISCOUNT ACCORDING TO INCOME TAX LAW?
According to the amendments made in article 89 and 63 of the Income Tax Law, unpaid premiums cannot be subject to discount even if there is insurance policy.

2- ARE UNPAID PREMIUM PAYMENTS SUBJECT TO DISCOUNT?
Unpaid Premium payments are not subject to discount when determining the tax assessment of the related period (payment by making amendment).

Source: Income Tax Law

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.