our – Muhasebe News

An employee will work outside of the city that our headquarters is located.

MuhasebeNews — Wed, 30 Jan 2019 14:54:30 +0000

Our newly established incorporated company in İstanbul bought a boat to rent and to organize tours for companies and clients. The port of registry is Datça Marina. We will employ a captain for the boat. Where should we open his insurance file? Can we open it in the city where the company’s headquarters is located? The employee will reside and work in Datça.

You have to hand in the statement of employment in the SSI that Datça Marina is affiliated. Or else, because of the change in the address, you might be subject to the provisions of Identity Notification Law.

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.

Are we required to pay withholding (15%) for our payment to Google adwords?

MuhasebeNews — Thu, 24 Jan 2019 12:30:17 +0000

Our company is making payments to Google via credit card for adwords. Pursuant to Decree numbered 476 and dated 19.12.2019, are we required to deduct 15% withholding for this service as of 01.01.2019?

IN TERMS OF VAT

In terms of General Communique on VAT Application it can be explained as; ‘’If the service brought to Turkey is in relation with the company’s activities in Turkey, the service is used in Turkey; if the service is not in relation with activities in Turkey, if its consequences are outside of Turkey, it is not used in Turkey.’’

In terms of General Communique on VAT, the VAT for services provided from abroad must be declared as reverse charge VAT by the addressee within the country making use of the service.

To deduce on VAT declaration (number: 1) the VAT
related to the import of services in accordance with Articles 1 and 2 of VAT Law;

Turkish persons and authorities shall give the reverse charge VAT declaration (Number: 2) and make payment to the related tax authority and deduce the VAT by showing it on the VAT declaration (Number: 1).

On condition that the utilization takes place in Turkey and there is no provision impeding the VAT;

-Getting technical, installation or consultancy services from abroad,

-Getting or renting incorporeal rights from abroad (know-how, brand etc.),

-Bringing a rented moveable (e.g. construction equipment) from abroad and using it in Turkey

-getting software services from abroad,

-getting repair-maintenance services from abroad,

-late interests related to the supply of goods from abroad,

-the service of a person who is an employee of a foreign company and works temporarily in Turkey

To not be subject to VAT for a service from abroad;

-It must be a service that is not subject to VAT,

– The service must not be imported to Turkey (or performed and made use of)

– The imported service must be one that is subject to VAT exemption.

All services provided from abroad and that do not fulfill these three conditions are subject to VAT.

A tax agreement between Turkey and the provider’s country of residence do not affect the VAT liability as tax agreements do not inclose VAT.

IN TERMS OF WITHHOLDING

Incomes of real and legal persons in Turkey obtained through their services abroad are subject to income and corporate tax in Turkey unless otherwise implied in tax agreements.

Withholding in the amount that is specified in Cabinet Decision in accordance with Corporate Income Tax must be deducted from the payments made abroad and declared with the withholding tax return.

In accordance with Article 30 of Corporate Tax Law numbered 5520, to withhold;

-The service provider must be a resident of a foreign country.

-In terms of its natüre, the service must be subject to withholding pursuant to Article 30 of Corporate Tax Law.

-A double taxation avoidance agreement can not be in force between the related countries and a there can not be a provision avoiding the withholding in the tax agreement.

Also payments that are within the scope of Article 94 of Income Tax Law and Article 30 of Corporate Tax Law, unless otherwise implied, the necessary ones must be withheld.

-salaries of employees from abroad (if a foreign person who is employed in another country also works as an employee or executive of a company in Turkey, their earnings are referred to as ‘’self-employment income’’, causing the payments made to that employee to be subject to withholding in accordance with Article 30 of Corporate Income Tax),

-remunerations of businesses regarded as self-employment such as engineering, maintenance, consultancy, education, writing a software, translating,

-payments for lease and rental services (financial or normal rents),

-interests for lending, deposit or similar fundings

-late interests related to the supply of goods from abroad

-payments for incorporeal rights such as copyrights, concession, business titles, trademark or know-how or rents

As well as;

-All kinds of commission payments,

-All kinds of payments regarding advertisements and notifications,

-Payments for overseas transport

-Insurance premium payments,

– Payments for businesses outsourced abroad

-Audit payments,

-Travel costs (hotel, restaurant, transportation, communication etc.)

-Fair participation costs,

-satellite rent payments,

Turnover of our company is TRY 30m. Are we supposed to sign an approval contract with a CPA?

MuhasebeNews — Mon, 21 Jan 2019 15:07:54 +0000

Net sales amount of our company in 2018 is TRY 30 million. Are we required to sign an approval contract with a CPA? If so, when?

IT IS NOT REQUIRED FOR THE ANNUAL INCOME TAX AND CORPORATE INCOME TAX DECLARATION TO BE APPROVED BY CPA’S.

Procedures and principles regarding the approval of annual income tax and corporate income tax declaration as well as the related financial statements and declarations are specified in Certified Public Accountancy and Sworn-in CPA Law numbered 3568 (Serial Number: 18) dated 30.07.1995:

‘’ Taxpayers who are obliged to give annual income tax or corporate income tax declarations (including liquidation, acquisition and transfer declarations), may have certified public accountants approve these declarations as well as attached financial statements and declarations if they want to’’ in ‘’Scope A’’ part of Section I titled ‘’Principles Regarding The Approval’’ in the aforementioned Communique,

‘’ Taxpayers may benefit from the service of approval if they WANT to, in accordance with the regulation on General Communique (Serial: 18) of Certified Public Accountancy and Sworn-in CPA Law.’’ in Article 4- Drawing Up & Cancellation of The Contract in the First Section of General Communique Serial: 20 of Certified Public Accountancy and Sworn-in CPA Law.

Within the scope of the above-mentioned explanations, it is possible for taxpayers to benefit from the approval service without being limited to any conditions if they WANT to.

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.

Are we supposed to declare our sales to the foreign consulates in Turkey on the sales form?

MuhasebeNews — Fri, 07 Dec 2018 15:30:36 +0000

We closed a sale with Consulate General of Italy in the amount of more than TRY 5.000. How should we declare this on the sales from?

The sale that is closed to the foreign consulate is a domestic sale. Every consulate has a potential tax identification number. It should be declared on the sales form.