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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.

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.

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.

Should we include the spendings made until the storage of the goods to the cost account?

MuhasebeNews — Tue, 26 Feb 2019 13:33:54 +0000

There are additional payments for the commercial goods we bought, such as the loading, shipping, discharge, insurance of these goods.
Should we include these payments in the cost of these goods?

In accordance with Article 274 of Law on Tax Procedure, the goods will increase in value through the cost price. According to this Provision, the transportation expenses for the goods (to the workplace/ storage/store) must be included in the costs of the goods.

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.

On which date should we enter the invoice made out on 2018 of an export scheduled in 2019?

MuhasebeNews — Thu, 17 Jan 2019 13:53:01 +0000

We have an export business in 2018. Customs clearance of this export will be in 2019. Which date should I enter this invoice?

2- As I’m liable for E-fatura and E-defter, will I have a problem in 2019?

1- 2019

2- We think there will be no problem.

Can we delete the invoices we made out for the sales that are made by the seller for fake customers?

MuhasebeNews — Thu, 17 Jan 2019 12:36:14 +0000

In September 2018, a sales person in the company of one of my taxpayers drew out an invoice to by opening a new current account to make sales to the accounting department. And that person also despatched the goods from the warehouse. However, when we wanted to reach an agreement with the companies, we couldn’t reach any of them and we found out that the names and tax numbers of the companies are fake. We found out that we were defrauded by our sales person. We filed a criminal complaint so a foreclosure and a fraud case has been entered.

1-Is it possible for us to exclude the invoice from the records and make a correction declaration on the VAT declaration? These invoices were made out as we couldn’t get the original copy

2-Can we count the costs of the despatched goods to costs of the goods sold during the taxation period?
(20.12.2018 12:44)

We think that it is not possible to make an action about the fraud before the court announces a decision. You also have to inform the Tax Authority for these incidents. We suggest you to get a special notice from the Revenue Administration.

Communiqué on Default Interest Ratio Determination of Late Payments Made to Creditors for Provision of Goods and Services

MuhasebeNews — Wed, 02 Jan 2019 13:04:50 +0000

In accordance with paragraph seven of article 1530 of Turkish Commercial Code numbered 6102 and dated 13.01.2011, the interest ratio is determined as 21,25 percent yearly and minimum compensation amount for collection cost as TRY 245,00 by Central Bank of the Republic of Turkey when default interest ratio for late payments to creditor during commercial transactions for goods and services is not foreseen in the contract and the related provisions are invalid.

The determined ratio and amount enters into force on the date of issue and takes effect as of 01.01.2019.

When made redundant without the notice period, is there any right to be demanded by the employee?

MuhasebeNews — Tue, 13 Nov 2018 06:00:55 +0000

According to the Labor Law, article number 25, if the dismissal is not based on the reasons in the part titled Rightful Termination, employee is obliged to be paid notice period payment.

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Source: Labor 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.