Ministry of Economy – Muhasebe News

What is the Deducted Corporate Tax in Turkey?

MuhasebeNews — Sat, 01 Dec 2018 15:00:12 +0000

1- Deducted Corporate Tax Implementation in Scope of Corporate Tax Law Article 32/a
The aim of the deducted corporate tax implementation within the scope of Corporate Tax Law article 32/a is to direct the savings to investments which has high value added, to increase production and employment, to encourage big scale investments in order to increase the international compete, to increase direct foreign investments, to decrease the inter-regional diversifications and to support the research and development activities in line with the aims foreseen with development plans and annual programs.

Deducted corporate tax anticipates lower taxation on the investments which has incentive certificate issued by Ministry of Economy. Deducted corporate tax rates stated in “Decree Regarding State Aids in Investments” which is dated 15/06/2012 and numbered as 2012/3305, are applied to the regional and big scale investments. According to the decree:

a.Deducted tax is implemented until the deducted corporate or income tax amount reaches the investment contribution amount.
b.If the investment is transferred after fully or partly started to operate, the assignor continues to benefit from the deducted tax rate until the date of transfer and the assignee starts to benefit from the deducted tax rate beginning from the date of transfer for the residual amount of investment contribution.

2- Incentive in Scope of Corporate Tax Law Artificial Article 4
The corporate tax rate is applied 75% discounted for the income of the tax payers who transfers their production plants which deals with textile, ready-to-wear, leather and leather manufacture exclusively to the provinces stated by the Council of Ministers until 31/12/2010 and employs 50 staff at minimum. The discounted rate is applied for five years following the budget year of the date of transfer. Income tax payers shall also benefit from this incentive.

Source: Revenue Administration

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 is Income Withholding Tax Incentive Regarding State Aids?

MuhasebeNews — Sat, 01 Dec 2018 14:00:14 +0000

For the investments done until 31/12/2023 in the provinces determined by the Council of Ministers according to their statistical regional unit classifications, national income per capita or socioeconomically development level, within the scope of the investment incentive certificates issued by the Ministry of Economy; the income tax calculated over the gross wage amount of the minimum wage applied to the employees over 16 age working and employed as it is foreseen in the incentive certificates, is cancelled from the withholding declaration fully or partly for the next 10 years after the investment starts running.

Source: Revenue Administration

Republic of Turkey Ministry of Economy General Directorate of Free Zones, Overseas Investment and Services

MuhasebeNews — Mon, 12 Nov 2018 06:00:25 +0000

Definition of Free Zone
Free Zones are defined as fenced-in areas in which special regulatory treatment exists for the operating users in order to promote exports of goods and services. Free zones offer more convenient and flexible business climate in order to increase trade volume and export for some industrial and commercial activities as compared to the other parts of country.

Definition of Free Zone

Promoting export oriented investment and production.
Accelerating foreign direct investment and technology access.
Directing enterprises towards export.
Developing international trade.

Activities
In general, all kind of activities can be performed in Turkish Free Zones such as:

Research and Development (R&D),
Manufacturing,
Software,
General trading,
Storing,
Packing,
Banking and insurance.

Investors are free to construct their own premises, while zones have also available office spaces or warehouses on rental basis with attractive terms. All field of activities open to Turkish companies are also open to joint-venture of foreign companies.

Bringing Export Proceeds to Turkey

MuhasebeNews — Fri, 17 Aug 2018 18:00:15 +0000

1.Savings of Export Proceeds
1.1. “Export proceeds can be freely saved by those concerned” within the scope of Communique numbered 2008-32/34 with Cabinet Decree related to “Decision about Doing Modifications on the Decision numbered 32 on Protection of the Value of Turkish Currency” dated 08.02.2008 and numbered 2008/13186. Those amounts can be either saved in foreign currency accounts or used by changing into Turkish Lira.

1.2. In the event of changing export proceeds into Turkish Lira, banks should prepare Foreign Exchange Purchase Document. It is possible to write the data related to company’s declaration and customs declaration on Foreign Exchange Purchase Document without demanding any other document from exporter companies which require purchase document in order to export.

1.3. If a company demands to prepare Foreign Exchange Purchase Document while exporting with Turkish Lira, it can do it. However, in case of export with private invoice, it is required to act upon views and instructions of Ministry of Economy and Undersecretariat of Foreign Trade.

1.4. In case of purchasing foreign exchange as export proceeds, it is required by banks that foreign exchange should be originated from abroad.

2.Collecting Export Proceeds
It can be collected;
2.1. via banks as a money order
2.2. in cash/effective (by the third persons who reside abroad or in Turkey and declare that they are importer, exporter or those who act on behalf of them)
2.3. via cheque (by the third persons who reside abroad or in Turkey and declare that they are importer, exporter or those who act on behalf of them)
2.4. via credit card

3.Export proceeds can also be collected as a credit given to real persons or legal entities or issued by the banks in Turkey or abroad.
4.It is possible to transfer export proceeds to Foreign Exchange Deposit Account and collect it wholly or in part from that account as export proceeds.
5.One can get export proceeds on behalf of manufacturing or exporting company from Foreign Exchange Deposit Account opened on behalf of a person or a company (which has a proxy) with foreign exchange on condition that power of attorney should be prepared before exporting.

3.Cash/Effective Collection of Export Proceeds
3.1. Customs Administration should detect with certified Cash Flow Statement whether effective export proceeds brought from abroad or not.
3.2. In order to get the effective being subject for Cash Flow Statement as export proceeds;
-It should be openly stated in the field of “Reason for Arrival” that the source of the effective is “export”.
-Identification of the person who submits Cash Flow Statement is compulsory.
-Written statement of exporter is also needed.

In the event that the amount of effective registered in Cash Flow Statement is completely attached to Foreign Exchange Purchase Document, it should be kept in by the bank without giving the original ones to those concerned. In the event that it is partially attached, the original one should be given to those concerned after writing a note on Cash Flow Statement about the amount attached to Foreign Exchange Purchase Document and make a photocopy of it.

3.3. Effectives delivered to the banks and registered in Cash Flow Statement can be sold to the banks by those concerned or can be transferred to Foreign Exchange Deposit Account opened in the name of foreign purchaser or exporter in Turkey. Afterwards, Foreign exchanges transferred to Foreign Exchange Deposit Account can be collected on behalf of exporting company. In the event that effectives registered in Cash Flow Statement is transferred in Foreign Exchange Deposit Account completely, it should be kept in the bank without giving the original ones to those concerned. In the event that it is partially collected, , the original one should be given to those concerned after writing a note on Cash Flow Statement about the amount attached to Foreign Exchange Purchase Document and make a photocopy of it.

3.4. Collecting the effective as export proceed by a bank (in the event that export proceed received as a transfer by those concerned is collected as effective from the bank) can be done providing that document of intermediary bank, which proves that effectives come from abroad, is submitted or the bank, which carries out transaction, gets the confirmation that foreign exchange (being a subject for effective) comes as a transfer.

Are Regional Administration Centers Exempt from Corporate Tax in Turkey?

MuhasebeNews — Thu, 16 Aug 2018 12:00:29 +0000

Regional Administration Centers will be exempt from tax if they fulfill the some conditions stated below;
1- If they are established with the permission of the Ministry of Economy.
2- If their cost are covered by a company whose legal and business center are abroad.
3- The cost should not be submitted to a company’s account which is a limited or fully taxpayer.
4- and the profit should not be apart.

*** Even if a company which is limited or fully taxpayer is under a regional administration center’s directorship, the exemption will be applied.

Source: Corporate Tax Law

It Is Easy to be a Turkish Citizen Now!

MuhasebeNews — Thu, 22 Mar 2018 14:00:07 +0000

Buy a House in the Value of 1 Million Dollar and Then Become a Turkish Citizen!
According to the Legislation related to Turkish Citizenship Law published in Official Gazette no. 29946 and dated 12.01.2017;

A foreigner, who fulfils the conditions stated below, can become a Turkish Citizen with the proposal of the Ministry and the Council of Ministers’ Decision within the scope of the clause (b) of the article 1 of the Law numbered 12.

– A person who invests capital valuing at least 2.000.000 (USD) (it should be confirmed by the Ministry of Economy),

– A person who buys a property valuing at least 1.000.000 USD under the condition that there should be an annotation in Title Deed Registry that it cannot be sold for 3 years (it should be confirmed by the Ministry of Environment and Urbanization.),

– A person who provides employment for at least 100 people (it should be confirmed by the Ministry of Labor and Social Security),

– A person who pays money valuing at least 3.000.000 USD in banks in Turkey providing that he/she should keep that account for 3 years (it should be confirmed by the Banking Regulatory and Supervisory Agency.),

– A person who buys official debt instruments valuing at least 3.000.000 USD which he/she will keep it for 3 years (it should be confirmed by the Under secretariat of Treasury).

***We base on Current exchange rate of the Central Bank of the Turkish Republic in the date of determination while determining the monetary value.

Source: Official Gazette (Dated 12.01.2017 – Numbered 29946)
Date: 14 February 2017

Do Not Forget!!! The Last Day for Affirmation of Closing the General Journals: 30 June, Friday!

MuhasebeNews — Thu, 29 Jun 2017 14:11:13 +0000

It is required to submit general journals kept corporeally in 2016 to notary until 30 June 2017, Friday (until the end of day) with an expression by writing “Certified” at the end of the last record and confirmed with cachet and signature.

***If commercial books are kept electronically, notarization will not be necessary for opening the books and closing the general journals and book of board decision.

***If there is a compelling reason declared by the Ministry of Economy, affirmation of closing the general journals should be done until the end of the month which is the following month of the end of compelling reason.

***Taxpayers, who are not within the scope of compelling reason in accordance with the law numbered 7020, should make the affirmation of closing the general journals until the end of 30 June 2017, Friday.

NOTE: According to clause 562/1-C of Turkish Code of Commerce, taxpayers, who do not make the necessary confirmations in line with 3rd clause of article 64, will be fined with 5.408 TL administrative fine in 2017.

What Kind of Supports are Provided Within the Scope of TURQUALITY?

MuhasebeNews — Wed, 21 Jun 2017 07:56:49 +0000

If a company applies by providing necessary documents and TURQUALITY® program management consultation pre-estimates and Ministry of Economy decides this company to receive TURQUALITY® supports, its expenses listed below will be supported.

Supports, their amounts and their durations are presented below in detail;

Source: Republic of Turkish Ministry of Economy

Gross agriculture, forestry and fishery output over 2017 projected at 222.2 billion som

MuhasebeNews — Sun, 26 Mar 2017 10:00:17 +0000

Gross agriculture, forestry and fishery output is projected at 222.2 billion som over 2017, according to the Ministry of Economy of Kyrgyzstan, Tazabek reported.
The real growth in gross output will be 2.2% and the share in the GDP will be 13.5%. The contribution of agriculture, forestry and fishery to the GDP growth in 2017 will be 0.3%.
Growth in plant growing will make 1.7% and livestock – by 2.7%.

The development of the agriculture sector will focus on:
– Development of efficient system of management and training of personnel;
– supporting the growth in production and export of agro-industrial products;
– boosting the efficient and rational use of water and land resources.

Source: akipress.org

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).