corporate taxpayers – Muhasebe News

What is the Corporate Tax Ratio of Merged Producing SMEs in Turkey?

MuhasebeNews — Tue, 23 May 2017 09:06:16 +0000

1- WHAT IS THE CORPORATE TAX RATIO?
Corporate tax ratio is 20% over company’s income.

2- WHO PAYS ADDITIONAL TAX AND FOR WHAT IS IT PAID?
Corporate taxpayers pay advance tax (limited in limited taxpayers with commercial incomes and incomes from agriculture)
2.1- In order to set off corporate tax of current taxation period
2.2- According to provisions stated in Corporate Tax Law,
2.3- In the ratio of corporate tax of current period.

The provisions applied to legally obligated institutions are also valid for limited taxpayers.

3- WHAT IS THE CORPORATE TAX RATIO OF MERGED PRODUCING SMES?
Council of Ministers has an authority to apply 75% discount for Corporate Tax on;
3.1- The incomes gained exclusively from productive activities in financial period ending at the date of merging and
3.2- Income gained from productive activities including the merging company’s financial period (when the merger takes place) of the small-and medium-scaled enterprises, dealing with containing and virtual productive activities for merging industrial registry certificate within the scope of article 19 of the Corporate Tax Law. Furthermore, it has authority to differentiate this discount ratio separately or together in respect for sectors, business branches, productivity areas, regions and financial periods or for institutions producing medium and high technology products or manufacturer and exporter. Additionally, the Ministry of Finance has an authority to determine rules and procedures related to enforcement of this sub clause.

Source: Corporate Tax Law

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What are the Tax Incentives Applied in Organized Industrial Zones in Turkey?

MuhasebeNews — Tue, 02 May 2017 12:32:15 +0000

Incentives regarding the income and corporate taxpayers located in organized industrial zones are stated in Incentive of Investment and Employment Law numbered 5084. Taxpayers functioning in these regions covering the provinces in scope of the law numbered 5084 are supported with income tax withholding incentive, employer contribution of insurance premium incentive, free investment land allocation and energy support.

1.Income Tax Withholding Incentive
(Law numbered 5084 a.3, a.7/h and General Communiqué of support for investment and employment serial number 1 and number 2)

2.Employer’s Contribution Incentive
(Law numbered 5084, a.4, a.7/h)

3.Free Investment Place Assignment
(Law numbered 5084, a.5)

4.Energy Support
(Law numbered 5084, a.6, a.7/h)

5.Legal entity of organized industrial zones is exempt from all types of tax and fees about the implementation of Organized Industrial Zones Law numbered 4562.
Wastewater fee is not taken from the zones operating a water treatment plant.

(Law n.4562, a.21)

1- Land and work-place deliveries of economic entities formed for the foundation of organized industrial zones are exempt from Value Added Tax (Value Added Tax Law a.17/4-k)

2- Economic entities founded by public body or professional institutions with real and legal entities, using all of its income to meet the requirements of these places, to prepare the infrastructure of organized industrial zones and small industrial sites and to ensure the common requirements such as: land, electricity, gas, steam and water are exempt from corporate tax. (Corporate Tax Law a.4/n)

3- Buildings in organized Industrial regions benefit from real estate tax exemption for the following 5 years after the finish of their construction. (Real Estate Tax Law a.5/f)

4- Allotting or distribution or integration procedures of the real properties in Organized industry or technology development regions are exempt from duties. (Duties Law a.59/n)

5- The buildings and plants constructed at the Organized industry zones, industries, and Small Crafts Sites are exempt from Construction Duty and duty of the certificate of occupancy. (Revenues of Municipalities Law a.80)

Source: Revenue Administration

In Which Law Does the Regulation Related to R&D Discount Take Part in Turkey?

MuhasebeNews — Fri, 21 Apr 2017 15:21:05 +0000

The sub clause (a) of the first clause of article 10 of the Corporate Tax Law Numbered 5520 related to the R&D discount has been abolished as of the date of 09.08.2016 in compliance with article 57 of the law numbered 6758.

The law on the amendment of some laws on the purpose of improvement of the investment environment numbered 6728 and article 3/A have been added to the law on the support of research, development and design activities numbered 5746. R&D discount institution related to the R&D and innovation activities existing within the structure of income and corporate taxpayers’ corporations has been specified in article 3/A of the law numbered 5746.

Accordingly, 100% of research and development expenses related to searching new technology and information developed within the structure of income and corporate taxpayers’ corporations will be a subject for discount on the determination of profit in line with article 10 of the Corporate Tax Law numbered 5520 and article 89 of the law numbered 193; providing that these projects are regarded as R&D and innovation projects by the Ministry of Science, Industry and Technology.

Herewith, R&D discount will be applied to the applications done within the scope of article 3/A of the law numbered 5746 as of the date of 09.08.2016 as long as the law numbered 5746 and the related legislations are taken into consideration about the discounts related to research and development projects on searching new technology and information. On the other hand, R&D discount will be applied to the projects being subject to the applications done before 09.08.2016 within the scope of General Communiqué on Corporate Tax with serial number 1 according to the provisions (the provisions before the sub clause (a) of the first clause of article 10 of the Corporate Tax Law was amended with the Law numbered 6728).

Source: Corporate Tax Law