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Can we state the wage to be paid to joint stock company partners in return for their work in the company as an expense?

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Two members of the board of whom we paid net daily allowance in the amount of 3.500 TL, since they are management members in a joint stock company with 5 partners, left the membership of the board of directors. They will continue to work as the unit manager in the company. How should we make the payment to them?

 It is obligatory for the wages paid from these companies in return for all kinds of services, to joint-stock partners and limited-liability partners and limited partners to be subjected to tax withholding and it is possible to state these an expense, since these are the payments within the scope of the 61st Article of the Income Tax Law.

According to the Article 61 of the Income Tax Law, with its meaning in the law of obligations, labor law and social security law, the wages of the board of directors, which are not considered as service fee but are considered as counsel fees, are considered as wages, and thus they are subject to tax withholding on the Income Tax tariff, and pursuant to the Article 40 of the Income Tax Law, these are accepted as the expenses to be deducted from the commercial income by considering them as the wage paid to the employee.


Source: İSMMMO
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