tax office – Muhasebe News

Do You Know the Period of Limitation for Tax Liabilities?

MuhasebeNews — Fri, 26 Oct 2018 07:00:53 +0000

The period of limitation for tax liabilities is indicated below;

1- The taxes that are not imposed and conveyed to the taxpayer within 5 years (from the beginning of the year when the tax is regulated) will be prescribed.
2- The application to the valuation commission for the assessment by the tax office stops the prescription. The deactivated prescription will resume since the date when aforementioned commission decision is submitted to the tax office. However, this deactivated period cannot be longer than 1 year in any case.
3- The prescription period relating to the taxes that cannot be collected or partly collected because of conditional exemption will start in the beginning of the year when the exemption conditions is broken.
4- If one takes advantage of the document provision subject to stamp tax and whose penalty is prescribed after the period of limitation of imposition expires, The tax claim belonging to aforementioned document will come out again.
5- The application to the valuation commission for the assessment by the tax office stops the prescription. The deactivated prescription will resume since the date when aforementioned commission decision is submitted to the tax office.
6- If the investor violate the special conditions about the investment allowance in the investment and operating period, the prescription start in the beginning of the year when these conditions are violated.

Sample 1: The taxpayer had not submitted VAT return concerning July 2017.
The tax office applied for the assessment to the related valuation commission in 30.10.2009 and the valuation commission submitted the decision to the tax office in 16.05.2011.

The prescription period belonging to July 2007 ends in 31.01.2012 under normal circumstances.
In the present case, elapsed time in valuation commission is more than 1 year.
Due to the fact that inactive period cannot be longer than 1 year according to the new provisions in any case, the prescription period will end in 31.12.2013.

Sample 2: It is necessary for taxpayers to apply to the valuation commission in 20.09.2011 in order income tax base to assess and the decision of the commission should be submitted to tax office in 10.04.2012.

The prescription period belonging to calendar year 2006 ends in 31.12.2011 under normal circumstances.
In this case, the prescription period will end in 22.07.2012 that is found adding the inactive period (inactive, because of forwarding it to the valuation period) to 10.04.2012 when the commission decision is submitted to the tax office.

Sample 3: It is necessary for taxpayers to apply to the valuation commission in 30.09.2011 in order income tax base to assess and the decision of the commission should be submitted to tax office in 30.11.2012.

The prescription period belonging to July 2006 ends in 31.12.2011 under normal circumstances.
In the present case, elapsed time in valuation commission is 1 year 2 months.
However, The inactive prescription will be processed in 30.09.2012 and the prescription will end in 31.12.2012 according to the new provisions, because the inactive period shouldn’t be more than 1 year in any case.

Source: Article 15 the Labor Law No. 4857
Date: 6 January 2017

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.

Invoice?

MuhasebeNews — Mon, 22 Oct 2018 13:28:05 +0000

1- What is the Meaning of Invoice?
Invoice is a document given from the seller to the customer in exchange for sold goods and services. It shows the amount of debit and regarded as a commercial document.

2- What kind of data should be written in an invoice?
The data that should be written in an invoice are listed below:

Date – Serial Number – Item Number
1. Invoice Date
2. Serial Number
3. Item Number

Seller’s Data
1. Seller’s Name, Trade Name (If any)
2. Seller’s Work Address
3. Seller’s Tax Office and Tax Number

Customer’s Data
1. Customer’s Name, Trade Name
2. Customer’s address
3. Tax Office and Tax Number (If any)

Type – Amount – Price – Sum
1. Type of product or service
2. Amount, (Number, Kg etc.)
3. Price (Unit Price)
4. Sum

3- Should there be a delivery note number in an invoice?
Delivery date of the goods and delivery note number,
1- should be issued by the seller on condition that the goods are delivered or sent by the seller;
2- should be issued and kept in the vehicle by the customer if the goods are delivered or sent by the customer.

4- How should a delivery note be issued if the goods are delivered to other branches except than the main office?
The person who sends the goods should issue a delivery note if the goods are delivered between more than one offices and branches or to another reseller.

5- Should there be stated price and amount in delivery notes?
No.
It is not compulsory to state price and amount in delivery notes stated above.

6- Should there be written where and to whom the goods are delivered?
No.
There should be written where and to whom the goods are delivered.

7- Is delivery note compulsory for retails sold to final customers?
No.
If final customers, who buy the goods as retail with the intent of consumption, send or deliver the goods, it is not compulsory to issue delivery note on condition that they keep the invoices or retail voucher.

8- What is the legal basis of issuing an invoice?
According to article 232 of the Tax Procedure Law, taxpayers stated in this article are supposed to issue or demand and get invoice for sold goods or services.

9- Is it possible to issue a receipt in order to issue a retail voucher? (Retail voucher-Cash voucher)
If the goods or service costs less than 900 TL, it is possible to issue a retail voucher instead of an invoice.

If customer demands an invoice, the seller should demand an invoice whatever the amount is.

Source: Tax Procedure Law

How To Pay For Public Receivables With Cheques?

MuhasebeNews — Thu, 16 Aug 2018 13:00:36 +0000

1- HOW TO PAY PUBLIC CLAIMS WITH CHEQUE OR TRANSFER ORDER (BANK TRANSFER CHEQUE)?
Payments made with crossed cheques are subject to Turkish Labor Law provisions, however;
1.1- The cheque prepared for the payment of Public Receivables is written in the name of the relevant tax office, with the record stating that it’s not promissory and prepared as a banker’s cheque. The Ministry of Finance is authorized to determine the amount that will be written on the cheque with the condition of helping identifying the receivable amount and not acting against The Labor Law.
1.2- In the case that any payment made with cheque or transfer order or bank card, credit card etc is not discharged, public claim claimant has the right of full recourse against the debitor.

***If acted in compliance with the article 2, if the cheque or transfer order is not accepted, in this situation, a notice is sent to who wants the transfer, to the drawer or their representatives and the cheque is returned.

2- WHAT SHOULD BE THE DATE OF CHEQUE FOR THE PUBLIC RECEIVABLE?
Cheques must be arranged according to the date they were given or mailed to the collection department or to the bank or at most the date of the day before. Cheques with older dates can not be accepted.

3- HOW TO CALCULATE THE DUE DATE FOR THE PAYMENT WHEN PUBLIC RECEIVABLES ARE PAID PERSONALLY?
According to article 41 in personal payments, the date the cheque is given or mailed to the related institution or to the bank, the money is deposited to the bank or to the post office, or in payments made with bank cards, credit cards etc, the payment is deemed to be made the day the process is completed with the card and the money is transferred to the related institution’s account.

***The provision of paragraph 2 of article 42 of the Law Numbered 6183 remains reserved.

Source: 6183 Numbered Law

During How Many Years Can You Deduct Company Loss from the Tax?

MuhasebeNews — Thu, 16 Aug 2018 07:00:06 +0000

1- WHILE CALCULATING THE TAX ASSESSMENT IN CORPORATE TAX, WHICH LOSSES WILL BE SUBJECT TO DISCOUNT?
While calculating tax assessment in Corporate Tax, the losses indicated below can be subject to discount on condition that the amounts related to every year are stated separately in Corporate Tax Return;
1.1- The conditions listed below are required while deducting the losses (which have taken place in previous declarations on condition that they have not been transferred more than 5(five) years), the losses whose amounts do not exceed the amount of equity capital as of the date of transfer date of acquired institutions, the losses that are in proportion to acquired asset and whose amounts do not exceed the acquired amount of equity capital of the dividend company.
1.1.1- Corporate Tax Returns related to the last 5(five) years should be submitted on time.
1.1.2- The activities of acquired company should continue at least 5(five) years beginning from the financial year when the separation or the transfer takes place.

***In case of the aggression of these conditions, there will be loss of tax for taxes that are not accrued on time because of loss offsetting.

1.2- In Turkey, except for the losses related to incomes being exempted from corporate tax, the losses originated from overseas activities on condition that they are not transferred more than 5(five) years;
1.2.1- Including the losses of tax assessments submitted according to tax laws of territorial country; the losses that are included every year in a report kept by the institution given the audit mandate;
1.2.2- On condition that that report and a translated copy of it should be submitted to the related Tax Office in Turkey, that losses can be subject to discount.

2- WHICH DOCUMENTS SHOULD BE KEPT AND CONFIRMED IN THE AUDIT REPORT ATTACHMENT?
2.1- Tax returns,
2.2- Balance sheet and income statement attached to the report kept by the auditing firm are supposed to be confirmed by the authorized institutions.

3- IF THERE IS NO AUDITING FIRM IN THE COUNTRY WHERE ONE IS ACTIVE, WHO MAY CONFIRM THE DECLARATIONS?
If there is no auditing firm in the country where one is active, tax returns can be confirmed by
3.1- Turkish Embassy or Consulate in that country with one copy of the document,
3.2- the representatives in the same nature that secure the Turkish benefits, if there is no embassy or consulate. It will be enough to submit the original document with a translated copy to Tax Office.

4- HOW SHOULD THE OVERSEAS LOSSES (BEING SUBJECT TO DISCOUNT) BE CALCULATED?
If the overseas losses (being subject to discount in Turkey) are set off or recorded as expense in related country, the amount of overseas income, which will be included in declaration in Turkey and which is before it is written as offsetting or expense, will be taken into consideration.

Source: Corporate Tax Law

How Many Tax Offices Are There In Turkey?

MuhasebeNews — Mon, 23 Apr 2018 06:00:39 +0000

As of the date of 31.08.2016, Tax offices are available in all of the cities in Turkey.

Throughout Turkey (with Electronic Tax Office Automation),

The Number of Tax Office                     : 419
The Number of Revenue Department    : 581
Tax Offices with MVTOA                       : 17 (MVTOA: Motor Vehicles Tax Office Automation Project)
The Number of Tax Office Directorate    : 2 (İstanbul and Eskişehir)
TOTAL                                              : 1.019

The first three cities that have the maximum number of tax offices;

1- Istanbul           : 57
2- Ankara             : 32
3- Izmir                : 31

Source: Revenue Administration
Date: 28 February 2017

If there is a Foreign Partner during Incorporation, What Should be Done According to Turkish Laws?

MuhasebeNews — Fri, 30 Jun 2017 12:07:24 +0000

If there is a foreign partner during incorporation, the followings will be needed.
1- Translated and notarized copy of foreign real person (partner)
2- Tax number taken from tax office or a document which shows ID number peculiar to foreigners
3- Notarized residence permit (if he/she resides in Turkey)
4- (For Turkish citizens residing abroad) a document which proves that he/she resides/works abroad and is taken related institutions of that country

***If foreign partner is also the Director of the company, work permit will not be necessary.

Source: Turkish Code of Commerce

Attention!!! The Last Day to Take Advantage of the Amnesty Law is 30 June 2017, Friday!

MuhasebeNews — Thu, 29 Jun 2017 15:14:08 +0000

In order to take advantage of Amnesty Law numbered 7020 which enables people to make an installment plan in order to pay their public debts with installments; taxpayers should apply until 30 June 2017, Friday.

***It is not possible to extend the application period, because there is no authorization related to extending the application period of Law numbered 7020.

It is crucial for debtors to apply to it until 30 June 2017 in order to take advantage of the opportunities provided by the law numbered 7020.

In order to take advantage of the Amnesty Law;
1- The application should be done by going to tax office (in person or with proxy).
2- By post (If the application is done with certified mail or APS, posting date and if it is done with surface mail, the date when the post arrives to tax office will be taken into consideration.)
3- It can be done via internet (www.gib.gov.tr).

****Furthermore, debt inquiry can be done through www.gib.gov.tr .

Source: Revenue Administration