Taxpayers – Muhasebe News

Taxes will be paid in digital environment, in Turkey

MuhasebeNews — Thu, 24 Oct 2019 09:00:13 +0000

Taxes will be paid in digital environment, in Turkey

The scope of the regulation enabling the taxes to be paid in digital environment has been enlarged. Companies with a turnover in the amount of 5 million TL will keep their books and documents on tax in electronic environment. There are also regulations for self-employed persons. Departure fees can be paid now through electronic and mobile applications.

In this way, the number of taxpayers using e-Document and e-Book applications is expected to increase from 140.000 to 300.000. On the other hand, all self-employed persons (lawyers, public accountants, self-employed doctors, architects, engineers, etc.) will have to issue their self-employment receipts as e-Self-Employed Receipts as of June 2020.

Taxpayers who are obliged to use e-Invoice application will also have to use e-Archive Invoice application and will issue all their invoices electronically except for the force majeure. Merchants and brokers trading vegetables and fruits within the scope of the wholesale registration system will be included in e-Invoice, e-Archive Invoice, e-Waybill, e-Invoice Receipt and e-Book applications as of January 1, 2020.

Source: Cnnturk
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.

Example 3: Taxpayers who do not reside in Turkey

MuhasebeNews — Wed, 03 Apr 2019 13:25:05 +0000

Taxpayer (C) who does not reside in Turkey and lives in France leased out her office in Bodrum and obtained 10.000 € as rental income 2018. It is withheld 12.000 TL from rental income.

On the date of collection and expenditure, buying rate for Euro announced by The Central Bank of Republic of Turkey is assumed as 6 TL.

Total Revenue from workplace (gross) = 10.000 € x 6 TL = 60.000 TL

Since the total rental income is subject to withholding in Turkey, the annual tax return will not be declared regardless the amount.

Example: Taxpayer (D), living in Brussels, leased out his flat in Ankara and obtained 7.000 € as rental income in 2018. Also he leased out his office in Ankara and obtained 9.000 € as rental income in 2018. It is withheld 10.800 TL from rental income of workplace.

On the date of collection and expenditure, buying rate for Euro announced by The Central Bank of Republic of Turkey is assumed as 6 TL.

Total Revenue from workplace (gross) = 9.000 € x 6 TL = 54.000 TL

He has no other income to declare in Turkey and preferred the lump-sum expenses method.

Since the total rental income is subject to withholding in Turkey, the annual tax return will not be declared regardless the amount.

Income tax for rental income from her flat exceeding the exempted amount is calculated as follows:

Total Gross Revenue (7.000 € x 6 TL) 42.000 TL

Amount of exception 4.400 TL

Balance (42.000 – 4.400) 37.600 TL

Lump-sum Expenses (37.600 x 15%) 5.640 TL

Taxable Income (37.600 – 5.640) 31.960 TL

Amount of income tax calculated 5.652 TL

Amount of income tax payable 5.652 TL Stamp duty 72,70 TL

Example : Taxpayer (E), living in Italy, leased out her office in Malatya in 2018 to a taxpayer whose income subject to simple method and obtained 6.500 TL as rental income annually.
She preferred the lump-sum expenses method and income tax for rental income is calculated as follows:

Rental Income from Workplace 6.500 TL
Lump-sum Expenses (6.500 x 15%) 975 TL
Taxable Income (6.500 – 975) 5.525 TL
Amount of income tax calculated 828,75 TL
Amount of income tax payable 828,75 TL Stamp duty 72,70 TL

Source: gib
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.

If taxpayers in Turkey sell their real property entered as assets, would they have to pay taxes

MuhasebeNews — Tue, 05 Mar 2019 13:35:45 +0000

A taxpayer keeps accounting records on the basis of balance. If the taxpayer sells their real property that is entered as an asset, would it be possible for them to benefit from 50% exemption from income tax and VAT exemption?

Only corporate taxpayers are able to benefit from the Real Property Income Tax Exemption that is mentioned in the Value Added Tax Law and Corporate Tax Law. Income taxpayers can not benefit from this exemption.

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.

Motor Vehicle Tax In Turkey!

MuhasebeNews — Sat, 01 Dec 2018 12:00:55 +0000

Land motor vehicles registered to traffic bureaus or offices, also helicopters and airplanes registered to the Directorate General of Civil Aviation are subject to the Tax.

Taxpayers are real and legal person who have motor vehicles that are registered to their own names in the traffic register and the civilian air-vehicle register maintained by the Ministry of Transportation, Maritime Affairs and Communications.

Tax is assessed and accrued annually in the beginning of January. The motor vehicle taxes are paid in two equal installments, in January and July, every year. Motor vehicles are classified into three categories in terms of motor vehicle tax:

List 1 : cars, motorcycles and terrain vehicles etc.
List 2 : minibuses, panel vans, motorized caravans, busses, trucks etc.
List 3 : planes and helicopters The amount of motor vehicle tax for land transportation vehicles is determined according to their age, type, number of seats, cylinder capacity, maximum gross weight and for planes and helicopters is determined according to their maximum takeoff weight.

***In 2015, 2.19% of the General Budget Tax Revenues comes from motor vehicle tax and the total amount of tax revenues derived from motor vehicle tax is 8.948.552.000 TL (Turkish Lira).

Source: Revenue Administration (Law No. 197, Official Gazette No. 11342 dated 23.02.1963)

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.

When will limited tax payers be exempt from Income Tax ?

MuhasebeNews — Wed, 07 Mar 2018 09:35:58 +0000

When will limited tax payers be exempt from Income Tax?

1- When will limited tax payers be exempt from Income Tax?

Limited tax payers are exempt from income tax when they have income from the exhibition and fair and kermes with the by courtesy of government.

2- HOW EXEMPTION IS IMPLEMENTED ON YOUNG ENTREPRENEURS?

2.1- In the article number 6663 of Tax Law, tax payers who are younger than 29 years old, their 75.000 amount income attained through the 3 taxation period in the calendar, will be exempt from the income tax.

2.2- Exemption can be benefited from the date of 10th February 2016, by the ones who are suitable for the provisions of the article number 6663. Consequently, the taxpayers who begin working before that specific day, have the opportunity to benefit from this exemption.

2.3- Exemption will be implemented on the amount of 75.000 in each and every taxation period, and in the case of having income less than decided exemption amount, next year will be the year tax payers can benefit from the exemption.

*** Detailed explanations regarding the tax exemption of young entrepreneurs, can be found in İncome Tax Notification serial number 292.

Source: Income Tax Law

Banking And Insurance Transactions Tax In Turkey!

MuhasebeNews — Wed, 03 May 2017 08:01:56 +0000

The subject of the tax is transactions and services performed by banks, bankers and insurance companies.
Taxpayers are banks, bankers and insurance companies.
All transactions and services performed by banks and insurance companies are subject to banking and insurance transactions tax (BITT) regardless of the nature of the transaction. There will be the tax upon the money, which they collect under the name of interest, commission and expenditure because of the services they performed on behalf of them. Bankers’ certain transactions and services performed and stated in the Law No. 6802 are the subject of the Tax. These are the bankers’ transactions and services. Other transactions of bankers are subject to VAT. The transactions of banks and insurance companies are exempt from VAT, but are subject to BITT, which is due on the gains of such companies from their transactions. The purchase of goods and services by banks and insurance companies is subject to VAT but is considered as an expense or cost for recovery purposes. The general BITT rate is 5% and some specific transactions are taxed at 1%. In addition, foreign exchange transactions are subject to 0 (zero) BITT according to the Council of Ministers Decision since 2008.

Taxation period in BITT is each month of the calendar year. Taxpayers declare their taxable transactions and pay their taxes by the evening of the 15th day of the following month.

***In 2015, 2.25% of the General Budget Tax Revenues comes from BITT and the total amount of tax revenues derived from BITT is 9.171.600.000 TL (Turkish Lira).

Source: Revenue Administration (Law No. 6802, Official Gazette No. 9362 dated 23.07.1956)