livestock – Muhasebe News

What is the Definition of Agricultural Income in Turkish Taxation System?

MuhasebeNews — Tue, 10 Oct 2017 14:03:12 +0000

Income derived from agricultural activities is also subject to the PIT. The term “agricultural activity” means any activity performed in land, sea, lakes and rivers in forms of cultivating, planting, breeding, fishing, hunting and etc. For tax purposes, persons who engaged in such activities are referred to farmers.

Agricultural earnings of farmers shall be taxed by the way of deduction over the proceeds as provided for in Article 94 of this Law. Earnings of farmers exceeding the dimensions of size of exploitation specified in Article 54 or the earnings of the farmers owning a reaper thresher or a motor vehicle of the same nature or more than two tractors up to the age of 10 years shall be taxed by determining their earnings according to the actual procedure (according to agricultural operations accounting or if they wish, according to the balance sheet principle). The farmers whose earnings are not taxed according to the actual procedure shall not submit tax return for such earning. However, the income derived from operation of reaper thresher, or any sort of motor vehicle, or more than two tractors up to age of ten that belong to the farmer but not included in the records of the agricultural exploitation, shall be taxed according to provisions relating to commercial earnings.

Gross revenue arising from agricultural activities consists of the following elements:
– Sales revenues earned from selling every kind of agricultural products produced, purchased or obtained in other ways including the products remained from the previous years,
– Proceeds received in return of using agricultural machinery and equipment in the agricultural works of other farmers,
– Sales revenues derived from the selling of items expensed previously,
– Insurance compensations received for the products damaged before or after they were produced,
– Revenue arising from the selling of the fixed assets (except immovable used in agricultural activities).

On the actual basis, the following expenses are deducted from the gross revenue to reach taxable income for the year:
– Expenditure incurred for supplying fertilizers, plants fodder, chemical products and like for farming,
– The price of livestock, agricultural products and other items purchased for resale,
– Payments made to persons employed on the farm for services, under the name of remunerations, premium and other,
– Expenses incurred for food, medical treatment and medicines for the workers, their insurance premiums,
– Expenses incurred for the operation and maintenance of farming installations, machinery, equipment and vehicles (fuel, lubricating oil, electricity, spare parts etc.) and their repair,
– The depreciation set aside according to the Tax Procedure Law,
– Payments made for means of production obtained on hire or paying its price,
– General expenses for the realization and maintenance of the agricultural earnings.

a) Interest on money borrowed for and spent on the farm,
b) Taxes, charges and levies paid, provided they are concerned with the farm,
c) Travelling and residential expenses concerning the farm in proportion with the importance and volume of business (provided they are limited to the duration and necessity of the voyage,
d) Rent paid for the farm,
e) Other expenditures in general.

– Damages and compensation paid on the ground of an agreement or verdict or ordered by the law, provided they are concerned with the farm,
– In case of sale of economic assets subject to depreciation (excepting immovable used for agricultural production) the loses calculated according to Article 328 of the Tax Procedure Law,
– Total amount of depreciation and fifty percent of the expenses on the vehicles included in the business enterprise and used for also personal and family requirements,
– The products of the farmers carried forward from the past years and which are subject to taxation on the basis of actual assessment procedure shall be valued and shown as expenditures at the average cost of production stated in Article 45 of the Tax Procedure Law.

Source: Revenue Administration

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Prices and Values in Livestock and Animal Products in Turkey, 2016

MuhasebeNews — Tue, 28 Mar 2017 09:03:43 +0000

Price of domestic-cattle increased by 26.3% with respect to the previous year
Price of cattle (culture) increased by 24.8% with respect to previous year and became 5 thousand 161 TL in 2016. Additionally, price of cattle (domestic) increased by 26.3% and became 3 thousand 126 TL. If we take a look at the prices of sheep and goats, price for sheep (merino) increased by 14.9%, price of sheep (domestic) increased by 16.5% and price of angora goats increased by 23.2% compared to previous year. Price of broiler increased by 17.8% and became 13.92 TL and price of laying hens became 15.45 TL with 17% increasing rate.

Price of “cow milk” decreased by 0.8% with respect to the previous year
Prices of cow milk became 1.15 TL with 0.8% decrease and sheep milk reached to 2.24 TL with 11.6% increase in 2016. When the red meat prices are examined, it is possible to see that price of cattle meat is 25.03 TL with 18.4% increase and price of sheep meat is 24.24 TL with 17% increase.

Livestock value increased by 22.9% with respect to the previous year
Livestock value reached to 89.9 billion TL in 2016. Value of bovine animals increased by 27.2% and became 62.7 billion TL, value of sheep and goats increased by 12.3% and reached to 22 billion TL and value of poultry became 4.9 billion TL with 23.4% increase.

The value of animal products was 62.2 billion TL in 2016
The value of animal products reached to 62.2 billion TL with 11.7% increase in 2016. Total production values of milk 24.3 billion TL, honey reached to 2.6 billion TL, hen eggs production value reached to 5.6 billion TL and red meat production value became 29.2 billion TL.

Values of animal production, 2015-2016

4.4 bn som to be invested into Kyrgyz agriculture in 2017

MuhasebeNews — Sun, 26 Mar 2017 09:00:39 +0000

4.407 billion som of investments will be channeled to Kyrgyzstan for the implementation of agricultural projects in 2017, Tazabek reported citing the Ministry of Economy.

The list of projects to be implemented with this money includes:
– Expansion of Community Seed Funds (World Bank);
– Livestock and Market Development (International Fund for Agricultural Development);
– Livestock and Market Development – 2 (International Fund for Agricultural Development);
– Improving Pasture and Livestock Management (International Development Association);
– Financing supplies of agricultural machinery and equipment to the Kyrgyz Republic (Eurasian Development Bank);
– Financing the agricultural projects and development of agriculture in the regions (Poland);
– National Water Resources Management – Phase 1 (International Development Association).

Agriculture and Food

MuhasebeNews — Mon, 13 Mar 2017 14:59:16 +0000

Home to the headwaters of the Tigris and Euphrates Rivers, Turkey’s agricultural sector today is echoing the prosperity of ancient Mesopotamia. With its favorable geographical conditions and climate, large arable lands, and abundant water supplies, Turkey is considered to be one of the leading countries in the world in the field of agriculture and food.

The restructuring efforts that began in the early 1980s resulted in a domestic market that is an integral part of the world economy today. Turkey has a robust agriculture and food industry that employs over a quarter of the country’s working population and that accounts for 7.1 percent of the country’s GDP. The sector’s financial contribution to the overall GDP increased 43 percent from 2002 to 2014, reaching USD 57.2 billion in 2014.

The strengths of the industry include the size of the market in relation to the country’s young population, a dynamic private sector economy, substantial tourism income and a favorable climate.

Turkey is the world’s 7th largest agricultural producer overall, and is the world leader in the production of dried figs, hazelnuts, sultanas/raisins, and dried apricots. The country is also one of the leading honey producers in the world. Turkey boasted production of 18.6 million tons of milk in 2015, making it the leading milk and dairy producer in its region. The country also saw production totals of 38.6 million tons of cereal crops, 28.5 million tons of vegetables, 17.5 million tons of fruit, 2 million tons of poultry, and 1.1 million tons of red meat. In addition, Turkey has an estimated total of 11,000 plant species, whereas the total number of species in Europe is 11,500.

This bountiful production allows Turkey to maintain a significantly positive trade balance thanks to its position as one of the largest exporters of agricultural products in the Eastern Europe, Middle East, and North Africa (EMENA) region. Globally, Turkey exported 1,781 kinds of agricultural products to 190 countries in 2015, accounting for an export volume of USD 16.8 billion.

Dairy products including milk, yoghurt, cheese, kefir, and ayran (a drink made of yoghurt and water) form an integral part of the traditional Turkish diet. Traditionally, artisan, unpackaged products have dominated the Turkish dairy market, meaning there is vast potential for investors looking to break into Turkey and the greater region with a mass market approach.

This potential is not limited to only the dairy sector. Turkey is looking to position itself as the preferred option for being the regional headquarters and supply center of top global players in the agricultural sector. To encourage investment in the sector, Turkey offers a set of incentives for potential agribusiness investors. The Turkish government’s support mechanisms include favorable regulations, an extremely competitive tax structure, a qualified labor force, and numerous investment incentives.

According to McKinsey and Co., Turkey offers significant investment opportunities in agribusiness subsectors such as;

fruit and vegetable processing,
animal feed,
livestock,
poultry,
dairy,
functional food,
fisheries, and
enablers (in particular cold chain distribution, greenhouses, irrigation, and fertilizer).

As part of its targets set for the agriculture sector by 2023, Turkey aims to be among the top five overall producers globally. Turkey’s vision for its centenary in 2023 includes other ambitious goals, such as:

USD 150 billion gross agricultural domestic product
USD 40 billion agricultural exports
8.5 million hectare irrigable area (from 5.4 million)
Ranking number one in fisheries as compared with the EU

Date: 13 March 2017