expenses – Muhasebe News

R&D expenses in Turkey increased 5 times in 10 years

MuhasebeNews — Fri, 06 Dec 2019 10:00:31 +0000

R&D expenses in Turkey increased 5 times in 10 years

According to the news published by Istanbul Chamber of Commerce, within the scope of Turkey’s National Technology Move, while R&D ecosystem strengthens, the ratio of R&D expenses to gross domestic product is expected to increase to 1.8 in 2023. This rate was 1.03 last year. In 2009-2018 period, R&D expenses in Turkey were constantly increasing. While total expenditure on R&D in 2009 was approximately TRY 8.1 billion, this amount increased by 5 times in 10 years and by 375% to TRY 38.5 billion as of the end of last year.

Source: Istanbul Chamber of Commerce / Link: https://www.itohaber.com/haber/guncel/210996/ar-ge_harcamalari_10_yilda_5_kat_artti.html
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 partner of company spend for company vehicle with the personal credit card?

MuhasebeNews — Fri, 20 Sep 2019 13:00:30 +0000

Can the partner of company spend for company vehicle with the personal credit card?

The partner of the company uses company vehicle registered in company asset. He/she wants to list the gas invoice for the vehicle bought with the personal credit card as an expense and take the cost of gas from the cash. Can this gas expense be written as an expense?

The expenses are made from company cash or company credit card, in Turkey.

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.

Examples Related To Rental Income Declaration- Actual Expenses Method

MuhasebeNews — Fri, 29 Mar 2019 14:30:03 +0000

Example: Taxpayer (B), living in Poland, leased out his flat in Antalya and obtained 15.000 $ as rental income in 2018. He preferred the actual expenses method and he has no other income to declare in Turkey. His total actual expense for this house is 3.000 Dollars.

On the date of collection and expenditure, buying rate for Dollar announced by The Central Bank of Republic of Turkey is assumed as 5,50 TL.

Total Revenue = 15.000 $ x 5,50 TL = 82.500 TL

Total Expenses = 3.000 $ x 5,50 TL = 16.500 TL

(Taxpayers who have chosen the actual expenses method will not deduct the expense corresponding to the amount subject to exception from their income, but only the expense corresponding to the amount subject to taxation. Thus, first the total expenses corresponding to the total taxable revenue should be determined. Deductible expenses corresponding to the taxable revenue is calculated as follows:)

Deductible expenses = Total expenses x Taxable Revenue* / Total Revenue

* Taxable Revenue = Total Revenue – Amount of exception for rental income from house

= 82.500 – 4.400

= 78.100 TL

Amount of exception corresponding to taxable revenue (Amount of deductible actual expenses)

= 16.500 x 78.100 / 82.500 = 15.620 TL

Income tax for rental income of taxpayer is calculated as follows:

Total Gross Revenue (15.000 $ x 5,5)	82.500 TL
Amount of exception	4.400 TL
Balance (82.500 – 4.400)	78.100 TL
Amount of deductible actual expenses	15.620 TL
Taxable Income (78.100 – 15.620)	62.480 TL
Amount of income tax calculated	13.749,60 TL
Amount of income tax payable	13.749,60 TL
Stamp duty	72,70 TL

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.

Examples Related To Rental Income Declaration- Lump Sum Expenses Method

MuhasebeNews — Fri, 29 Mar 2019 13:30:57 +0000

Example: Taxpayer (A), living in Germany, leased out his flat in Ankara and obtained 15.000 € as rental income in 2018. He preferred the lumpsum expenses method and he has no other income to declare in Turkey. On the date of collection, buying rate for Euro announced by The Central Bank of Republic of Turkey is assumed as 6 TL.

Income tax for rental income of taxpayer is calculated as follows:

Total Gross Revenue (15.000 € x 6 TL)	90.000 TL
Amount of exception	4.400 TL
Balance (90.000-4.400)	85.600 TL
Lump-sum Expenses	(85.600 x 15%) 12.840 TL
Taxable Income	(85.600 – 12.480) 72.760 TL
Amount of income tax calculated	16.525,20 TL
Amount of income tax payable	16.525,20 TL
Stamp duty	72,70 TL

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.

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.

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.

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.

Can we directly write off the SCT and VAT expenses of a passanger car?

MuhasebeNews — Fri, 21 Dec 2018 12:30:06 +0000

… One of my taxpayers who is self-employed wants to buy a passenger car. Is it possible to directly write off the Special Consumption Tax (SCT) of the passanger car that he will buy?
(18.12.2018)

STC and VAT that is paid fort he new passanger car are written off.

On which account can we follow the expenses regarding the inspection visits to the worksite outside the city?

MuhasebeNews — Thu, 13 Dec 2018 14:00:33 +0000

The Limited Company whose head office is in İstanbul started their works in Çanakkale. Partners and some employees go to Çanakkale from İstanbul to inspect the construction works. Should we record the gas, parking area, hotel invoices into the 770 GENERAL ADMINISTRATIVE EXPENSE ACCOUNT or 730 GENERAL PRODUCTION EXPENSE ACCOUNT? And also, should we record the representation entertainment expenses into the 770 account or 730 account?

All the expenses you mention are followed on 770 account.

Am I suppose to draw up a Note of Expenses for the real-estate I bought for the private company?

MuhasebeNews — Wed, 12 Dec 2018 11:30:48 +0000

My taxpayer is a private company using the balance sheet method. It wants to buy the place in which it operates. The seller is a normal citizen. What are the required steps to enter this apartment into our accounting records? Can we do so through the title deed transactions directly? It is possible to calculate the VAT for this?
(11.12.2018 16:14)

A note of expenses is drawn up without calculating the VAT and Income Tax stopage for the real-estate that will be bought from a non-taxpayer.

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.