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Are sales made from the Free Zone in Türkiye counted as exports?

MuhasebeNews — Sat, 20 Jan 2024 20:27:16 +0000

Can we benefit from the deduction in Article 32/8 of the Corporate Tax Law for the profits obtained from the sales of goods abroad and subcontracting work from the Free Zone in Türkiye? Or should the export be made abroad?

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.

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.

Am I supposed to submit annual income statement for my income from a single employer in Turkey?

MuhasebeNews — Sat, 30 Mar 2019 08:00:01 +0000

A taxpayer who has business income on real taxation system in 2018 also works in a company as a 4A employee. Is this person also supposed to include their income from wages on the income statement they will submit for their business earnings?

If the income is earned from a single employer, it is not written on the annual income statement notwithstanding the amount.

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.

Rental Income From Immovable Property In Terms Of Double Taxation Agreements

MuhasebeNews — Thu, 28 Mar 2019 14:30:57 +0000

Rental income from immovable property is mentioned in Article 6, titled “Income from Immovable Property” and Article 12, titled “Royalties” of Double Taxation Agreements that Turkey concluded.

Article 6 of the Agreements mainly deals with income from leasing of immovable properties and related rights, and provides that the State where the immovable property is situated has the right of taxation. Accordingly, taxation of the rental income from the immovable property situated in Turkey of individuals resident in the other State will be in accordance with the procedure and principles of domestic legislation of Turkey and in these Double Taxation Agreements there is not any provision limiting the domestic legislation.

For example, Taxpayer (D) who is living in Germany will be taxed in accordance with the domestic legislation of Turkey in case he rents his property in Bodrum.

Turkey has a limited right of taxation from the rental income of nonresident taxpayers obtained by leasing royalties defined in Article 12 of Double Taxation Agreements.

Rate of withholding to be made on the mentioned income may vary from state to state in the Agreements. If the rate specified in Article 12 of the Agreement and the rate defined in our domestic legislation differs, the calculation should be made according to the lower rate.

For example, Taxpayer (E) who is a musician and living in Netherlands had given the copyright of her music album to a music production company in Turkey. The payments of copyright fees that would be done to Mrs. (D) by the music production company are subject to 10% withholding tax according to the Article 12 of Double Taxation Agreement between Turkey and Netherlands.

As the example above, the payments that would be done by the comic paper to Taxpayer (F) who is a caricaturist and living in Netherlands, are subject to 10% withholding tax according to the Article 12 of Double Taxation Agreement between Turkey and Netherlands, in case he gives the usage right of the cartoons he drew to the comic paper in Turkey.

However, in order to be taxed in line with Article 12 of Double Taxation Agreement, residents (full taxpayers) of other country who derive income or profit from Turkey, should submit certificate of residence received from competent authorities of their own resident country along with the translated copy of it into Turkish language which will be approved by a notary public or Turkish Consulates in that country, to the related tax office or the tax withholders in case withholding tax is required. The tax withholders are required to keep the certificates of residence to submit to the competent authorities on demand. In case of failure of submitting the certificate of residence, domestic laws shall be applied instead of the Articles of the Agreement.

The taxes that would be paid by Turkish citizens, who are living in foreign countries related with the incomes they earned in Turkey, would be deducted or exempted at the countries they are living in accordance with the Double Taxation Agreement with that country.

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 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.

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

MuhasebeNews — Thu, 21 Mar 2019 13:45:14 +0000

Any decrease occurring in the capital itself which is subject to income from immovable property is not considered as loss and is not accepted as expense when determining the gross income amount.

Losses arising from the expenditure surplus in the calculation of the net amount of income from immovable property can be deducted from income to be declared in the following years not for more than 5 years.

There are two exceptions to this rule:

In the event of any loss resulting from deducting the amount of the rent of the house or lodging paid by the lessor from the rental income of their house, such loss cannot be subject to deduction from the income from immovable property to be obtained in the following years.

Non-deductible part of the amount corresponding to 5% of the acquisition value which has been subject to deduction of income from the immovable rented as house is not considered as an expenditure surplus.

Accordingly, it is not possible to consider an expenditure surplus as loss in these situation.

Is it possible to benefit from medical care if I take unemployment pay in Turkey?

MuhasebeNews — Mon, 18 Mar 2019 13:44:27 +0000

For those who are entitled to the Unemployment Salary, it is possible to benefit from the below-mentioned services as long as they take the unemployment salary.

Unemployment Salary
General Health Insurance Premium
Finding A New Job
Career development courses, vocational courses and training courses

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 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.

What are the requirements to benefit from Unemployment Pay in Turkey?

MuhasebeNews — Wed, 06 Mar 2019 12:23:42 +0000

In order to benefit from the Unemployment Pay in Turkey, the following requirements must be fulfilled:

Being unemployed without one’s will and default,
Being subject to an employment contract 120 days before the termination of that contact,
Having paid worker’s insurance premium for at least 600 days in the last 3 years before the termination of the employment contract,
Applying to the closest ISKUR branch in person or online in 30 days following the termination of the employment contract.

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.