What is Legal Entity?

MuhasebeNews — Thu, 22 Feb 2018 14:29:42 +0000

What is Legal Entity?

1- What is legal entity?

Legal entity is a person or a community of commodities that are established with a specific purpose and have an independent legal personality, also the power to possess right, commodity and debt.

2- Which commodities can be given as the examples of legal entities?

Limited Companies

Joint-stock companies

Associations

Foundations

Cooperatives

Unions

Political Parties

Sports Clubs

3-Who represents legal entities?

Real people, who compose the above mentioned legal entities, were chosen and represent the legal entities within a specific frame.

4- How Legal entities are composed?

The real people who compose legal entities come together with a common purpose and they apply to the proper authorities and the community is shaped in the eyes of law.

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.

Expenses that will be deducted from Company’s Earnings!

MuhasebeNews — Tue, 16 May 2017 10:34:22 +0000

1- DEDUCTIBLE EXPENSES ACCORDING TO INCOME TAX LAW
Income is taxed through net profit.
In order to determine the net profit, the expenses stated below should be accepted to deduct:
1- General expenses
2- Expenses related to the staff
3- Losses, damages and indemnities related to work
4- Travel and residence expenses
5- Vehicle expenses
6- Tax-in-kind, levies and charges
7- Amortizations
8- Fees paid to employers’ associations
9- Fees paid for personal retirement insurance
10- Donations made to associations and foundations making food banking

2- DEDUCTIBLE EXPENSES ACCORDING TO CORPORATE TAX LAW
In the determination of company’s income calculated like commercial income, a tax payer can deduct expenses stated below from its revenue.

1- Stock certificates and export cost of bonds
2- Incorporation and organizational costs
3- General meeting, business combinations, denouncement and liquidation costs
4- Insurance costs
5- Profit shares of partnership of commendams
6- R&D discount
7- Creditors without interest-fee and profit shares paid to private financial institutions

3- LOSS OFFSETTING AND OTHER DISCOUNTS
3.1- Loss offsetting
3.1.1- Previous losses
3.1.2- Losses of acquired company
3.1.3- Overseas losses
3.2- Donations and subsidies
3.3- Sponsorship costs
3.4- Dividends

Source: Corporate Tax Law numbered 5520 – Income Tax Law numbered 193

foundations – Muhasebe News

What is Legal Entity?

Expenses that will be deducted from Company’s Earnings!