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How many types of work permits are there in Turkey?

MuhasebeNews — Wed, 10 Apr 2019 14:40:16 +0000

How many work permits are there according to the law?

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.

How to pay the rental income tax?

MuhasebeNews — Thu, 28 Mar 2019 13:55:01 +0000

Income tax calculated on the declaration is paid in two equal installments in March and July of 2019.

The first installment must be paid with the stamp tax until april 1, 2019.
The second installment must be paid until july 31, 2019.

Tax can be paid ;

on www.gib.gov.tr (Interactive Tax Office and GİB Mobile application)

– with credit cards of contracted banks

– with bank cards or bank account of contracted banks

– with bank cards, credit cards and other payment methods of banks operating in foreign countries

to contracted banks

-branches

-alternative payment channels (internet banking, telephone banking, mobile banking

to Postal And Telegraph Corporation (PTT)
to all tax offices.

You can learn how to calculate your income tax you are supposed to pay by using “Calculations” section from webpage www.gib.gov.tr . (www.gib.gov.tr —Homepage—Internet Tax Office—Transactions without Code—General Inquiry and Calculations—Calculation of Rental Income)

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 Karen Audit 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.

How to draw up an invoice for the services we give to foreigners in Turkey?

MuhasebeNews — Mon, 25 Mar 2019 13:30:38 +0000

My taxpayer who is a self-employed architect will draw a project for a Belgium citizen in the amount of 7.500 Euros.

Is it possible for him to draw up the self – employment invoice in Euro?
How are the VAT and withholding practices?
Is it possible to make collections in cash and in person?

18% VAT is applied notwithstanding the nationality of the client.

If the client is not a taxpayer, the income tax withholding is not applied.

The collection is made through the bank.

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.

How to obtain the rental income?

MuhasebeNews — Wed, 13 Mar 2019 11:08:07 +0000

OBTAINING OF RENTAL INCOME

Obtaining of rental income is bound to collection principle. In order to tax the rental income in accordance with the collection principle, it should be collected in cash or in kind.

Collection of Rental Income in Cash

Collection of rental income in cash states that the payment of rent in Turkish Liras or in foreign currency. Received cheques are also taken into account as collection in cash.

Rental income collected by the taxpayers relating to that year or previous years is taken into account as the income of the year which it is collected in.

For example, if 2015, 2016 and 2017 rental income is collected in 2018, this income shall be taken into account as the income of year 2018.

Rental income relating to prospective years which is collected in advance is not taken into account as the income of the year which it is collected in but as the income of the years which the income is related to.

For example, if 2018, 2019 and 2020 rental income is collected in 2018, each year’s rental income shall be declared in the related year.

In terms of foreign currency, rental payment and gross revenue is calculated according to the exchange rate announced by The Central Bank of Republic of Turkey on collection date.

Collection of Rental Income in-kind

If the rental pyment is collected in-kind, payments are valued according to Tax Procedure Law.

Collection and Payment of Leasing by Means of Banks or Postal Administration

Those who obtain a rental income and their tenants;

For residence, 500 TL or over for each house,
For workplace, without a limitation of amount should make the payments and collection of the leasing by means of banks, financial institutions or postal administrations and are obliged to authenticate their payments and collections through documents issued by these institutions.

Since receipt or monthly statement is issued for the payment and collection while using mediums like depositing money, money order, cheque or credit cart by means of banks, financial institutions or postal administrations, these documents shall be accepted as certifying documents. Payment and collection carried out via internet banking are also evaluated in the same scope.

The fine which shall be applied to persons who do not comply with the aforesaid obligations is 5% of each transaction’s amount and it should be no lower than the amount of special irregularity fine determined for that year in accordance with the repeating Article 355 of Tax Procedure Law.

Records on Rental Incomes of Taxpayers Who Have Bookkeeping Obligation

According to the Tax Procedures Law No. 213, real person taxpayers who are obliged bookkeeping should register rental incomes subject to income tax and related expenses to a separate page of general ledger, operating account or self-employment income book or to a separate book or sheet separately, without mixing and uniting with accounts keeping for other earnings.

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.

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

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.

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.

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.

How should I register the scrapping bonus on the invoice of a new passanger car?

MuhasebeNews — Thu, 27 Dec 2018 13:37:22 +0000

My taxpayer bought a new passanger car. They drew out an invoice by counting the VAT and Special Consumption Tax (SCT). However, ‘’…your junk car with plate received the SCT discount and the SCT won’t be applied’’ is stated on the invoice. We don’t own such a ‘junk’ car, so how should I keep the accounting record?

If you don’t own a junk car, TRY 10.000 shall be reduced from the calculated SCT and then rest of the amount shall be written as expense.

How to Calculate The Costs of Stock Certificates Obtained Through Capital Increase?

MuhasebeNews — Wed, 12 Dec 2018 14:30:28 +0000

Cost Value of Stock Certificates Obtained Through Capital Increase

In the case where the companies increase the capital with capital reserves, the cost value of stock certificates that are either previously obtained or obtained through the increase of capital will be determined by splitting the cost value of previously owned stock certificates to the number of stock certificates obtained after the increase of capital.

E.g. Mr. (A) bought 100 stock certificates of (B) Incorporated Company for TRY 45.000.000 on 03.02.1999. (B) Inc. increased its capital by 50% to be fully covered from the capital reserves on 09.03.1999. 500 stock certificates were given to Mr. (A) following this transaction.

Therefore, the cost value of every stock certificate that Mr. (A) obtained after the increase of capital will be TRY 30.000 by splitting the paid TRY 45.000.000 to the total number of stock certificates.

If the capital is increased through using the profit reserves, the cost value of stock certificates obtained through this transaction will be calculated by splitting the sum of cost value of previously owned stock certificates and the nominal value of the newly purchased stock certificates to the total number of stock certificates obtained after the increase of capital.

E.g. Mr. (A) bought 1000 stock certificates, whose nominal value is TRY 1.000, for TRY 15.000.000 from (B) Incorporated Company on 03.02.1999. (B) Inc. increased its capital by 50% to be fully covered from the capital reserves on 19.02.1999. Mr. (A) was given 500 stock certificates for this transaction.

The cost value of every stock certificate that Mr. (A) obtained after the increase of capital will be calculated as TRY 10.333 [(15.000.000+500.000)/ 1.500=] by splitting the total nominal price of stock certificates obtained through the increase of capital by paying TRY 15.000.000 for 1.000 stock certificates [(500×1000=) TRY 500.000], to the total number of stock certificates [(1.000+500)=1.500].

When companies aim to increase the capital in cash, the cost value of stock certificates which were obtained through paying their nominal values through owners’ exercising their right of priority will be calculated by splitting the total of cost value of previously owned stock certificates and the cost of newly purchased stock certificates to the number of stock certificates that are obtained after the increase of capital.

Source: Income Tax Law Numbered 232
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.

How much of the VAT return can I take with the CPA (Certified Public Accountant) Report?

MuhasebeNews — Thu, 06 Dec 2018 14:30:35 +0000

What is the upper limit of VAT return that the taxpayers who signed a full certification agreement can take with CPA Report?

The upper limit of VAT return that can be taken with a CPA Report is given below in terms of the types:

1-VAT Law: The upper limit for the year of 2018 is TRY 562.000 for the Articles of 11/1a, 11/1c, 13, 14, 15/1-b, 17/4-s, 9

2- The upper limit for the year of 2018 is TRY 1.124.000 for the Article of 29/2.

3- The upper limit for the year of 2018 is TRY 148.000 for the Article of 11/1-b (A Full certification agreement is not required for the returns that will be taken according to this Article.)

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.)