Subject: Whether a Taxpayer Operating a Commercial Taxi Business with a Driver Can Benefit from the Simplified Tax Regime
The request form states that due to your commercial taxi business, your earnings were determined under the simplified tax regime. However, since you are imprisoned based on a detention document from the … Public Prosecutor’s Office as of 28/3/2024, you have continued the activity by employing your son, …, as a salaried driver. The inquiry seeks to determine if your earnings from this activity during your imprisonment can still be assessed under the simplified tax regime.
Article 37 of the Income Tax Law No. 193 defines commercial income as earnings from all types of commercial and industrial activities and specifies that such income can be assessed according to the Simplified Tax Regime or other methods.
Article 46 outlines the conditions for using the simplified tax regime, and Article 47 details both general and specific conditions for it. Article 47, paragraph 1, states that temporary absences from work due to reasons like travel, illness, imprisonment, etc., do not violate the requirement to work or be present in one’s own business.
According to the General Communiqué on Income Tax No. 320, Article 7, paragraph 1, being temporarily absent due to imprisonment does not violate the requirement to work in one’s own business, provided that other conditions are met.
Therefore, continuing your taxi business through your son while imprisoned does not violate the requirement to work in one’s own business, and as long as other conditions are also met, your earnings can still be assessed under the simplified tax regime.
Source: Revenue Administration
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